More than 50% of Malaysia fields are matured or at its late life stage. These fields are mostly highly dependent on gas lift as the artificial lift method to maximize well potential and reserves recovery. Many of these fields are presently facing matured field operational challenges such as high water cut, shortage of gas lift supply, reservoir pressure depletion and aging facilities. As host authority for all hydrocarbon resources in Malaysia, PETRONAS Malaysia Petroleum Management (MPM) has initiated a Malaysia- wide effort to improve the production rate and recovery of hydrocarbon by expanding the usage of Electric Submersible Pump (ESP) as an alternative artificial lift method. ESP is an alternative artificial lift method that has been successfully pilot deployment. This paper focuses on the strategy of ESP replications at Malaysia to address production decline and extending well life through various enabler to support the target. PETRONAS has identified 10% of producing wells in Malaysia that will benefit from ESP technology, resulting in 6% incremental production. Subsequently, PETRONAS embarking ESP Feasibility Study with Solution Partner to mature ESP opportunities basket in integrated approach surface and subsurface and acts as an enabler for PAC to evaluate future fields for ESP replications. There are four main scopes in Feasibility Study which are, (i) Data Gathering and Well Screening, (ii) Potential Candidate Identification, (iii) Maturation of Opportunities Proposal and (iv) cost effective solution for ESP implementation. At the same time, ESP Integrated Contract which will serve as end-to-end solution for all PACs, is being developed by MPM as a key enabler to enhance ESP replications via more volume of work, lower cost, and improved lifecycle efficiency. There were five fields were under the ESP Feasibility Studies where comprehensive of subsurface and surface study were conducted. More than 500 strings were evaluated. A 50 well proposals were completed and the ESP opportunities to be implemented by phases to address production decline and to increase well life, leveraging on ESP Integrated Contract to create more value to PETRONAS and PAC. The feasibility study has also guided PETRONAS in candidate prioritization. Long term roadmap on ESP replications was developed to fully capitalize on ESP Technology to enhance Malaysia production and reserves monetization by creating the right ESP eco-system for the Oil & Gas Industry. The feasibility Studies approach enable future ESP studies in Malaysia fields.
Between the years 2013 to 2014, the completions operations in Malaysia have shown irregular performance across all the operators and service companies. Low uptime level, exceeding budget, non-standardized design, unreasonable contingency level and excessive surplus material are among the identified elements that causes such irregular performance. The value leakage from these elements has become a huge concern to Malaysia Petroleum Management (MPM); the regulatory body of PETRONAS. A strategy was required to set up a uniform way to standardize, optimize and improve the efficiency of how completions scope is implemented in Malaysia. Based on the analysis of over 300 wells completed from 2013 to 2015, MPM set up a 3-year roadmap on elevating the completions performance covering the pre-engineering design, operation execution, contingency computation and hardware inventory management. These elements are the basis that operators use to meet MPM Completion Minimum Standards (CMS). This CMS was set up to outline the performance benchmarking for all operators in Malaysia. This paper will outline the strategy that MPM implemented to curb the value leakage that was effecting the completions performance. The strategy includes the establishment of an industry level collaboration known as Completions Standardization Technical Committee (COMSTEC), which comprises members from MPM, operators and service companies. This committee have jointly produced a guideline to standardize and optimize a complete end-to-end completion cycle in order to meet the performance benchmarking. After a year of implementation, the impact of this strategy implementation was evident. The number of wells completed in 2017 that met the CMS improved by 45% compared to 2016. This optimized execution of completions scope created a value of 19% in cost efficiency throughout all the operators. Although there were challenges in the early stage of implementation, the value that all the stakeholders gained from it have exceeded the expectation and will continue to be implemented in the coming years. Astoundingly the benchmarking drives more new technologies implementation despite in low oil prices period. The relevance of both the performance benchmarking and the guideline are maintained at all times as its effectiveness is constantly monitored to reflect the latest state of the industry.
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