1. PETRONAS is Malaysia's national oil company that regulates exploration and production activities through production sharing contracts and licenses companies providing upstream services. 2. Deepwater areas offshore Sabah in Malaysia represent a major exploration opportunity, with 20 production sharing contracts already awarded in deepwater and 16 discoveries made. Deepwater areas are expected to contribute a major portion of Malaysia's estimated 10 billion barrels of undiscovered oil and gas resources. 3. Successful deepwater discoveries in recent years include the Kikeh, Gumusut/Kakap, Malikai, Kebabangan, Jangas, Ubah Crest and Pisangan fields, with several already online or planned to come online between

1. Deepwater Oil and Gas Malaysia
Bergen
24 April 2007

2. Contents
1. PETRONAS – What it is
2. Activities & Opportunities in Deepwater Oil & Gas Malaysia
3. Planned events during 2007
4. Business Culture
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3. PETRONAS – National Oil Company
• 100% government owned
• Holds exclusive ownership and control over
all petroleum resources in Malaysia
• Regulates E & P activities through Production
Sharing Contract. To date 62 PSCs awarded.
• All companies providing services/ products
in upstream sector need to be licenced by PETRONAS
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4. PETRONAS – International oil company
• A fully integrated & International oil company with more than 63
international ventures in 33 countries
• Involves in upstream sector in 24 countries with recoverable
reserves of 5.94 BBOE
• Ranked as one of Fortune 500 largest corporations & recorded a
profit of USD11.566 billion as at 31/03/06 on turnover of
USD44.282 billion
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5. Major Deepwater Opportunities in SEA
Deepwater areas
India: Active E&P activity, Thailand: Several
70% of offshore acreage is significant offshore
deepwater discoveries in the Gulf
of Thailand recently
Vietnam: Considerable
deepwater potential
Malaysia: Offshore Sabah
is the region’s exploration
hot spot, 20 PSCs in
deepwater & 16
discoveries
Indonesia: Major natural gas
discoveries in the deepwater Kutei
Basin, deepwater exploration in
the Tarakan and Papalang Basin
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6. Exploration acreages – 565,500 km2
• 71 Exploration Blocks – 44 awarded and 27 still open
• 22 Deepwater/ Ultra DW blocks – 20 awarded to 8 PSC contractors
• 146 oil & 195 gas fields discovered – only 53 oil & 23 gas fields
producing
• Oil reserves incl. condensate 5.25 bb and gas 87.95 tscf, Jan 2006
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7. Malaysia has 5.25 billion barrels of oil reserves and
87.95 trillion cubic ft of gas reserves
5.25 billion barrels of oil and
condensate
Deepwater oil
26%
Shelfal oil
74%
87.95 trillion cubic feet of gas
Deepwater
gas
4%
Shefal gas
Source: Petronas
96%
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8. Deepwater/Ultra Deepwater to contribute major portion
of undiscovered resources – 10 billion boe
Shelfal Oil,
35%
Deepwater
Oil, 65%
Deepwater
Gas, 43%
Shelfal Gas,
57%
Source: Petronas
8

9. Positive results in Malaysia deepwater the past years
First Kikeh Oil
Deepwater Deepwater Discovery Ubah, Pisangan
PSC Exploration Limbayong Gas and Jangas Oil &
Introduced Well (1170m) Discovery Gas Discoveries
Malaysia as
Deepwater
1993 1994 1995 1998 2002 2003 2004 2005 Regional
Hub
Kebabangan Kamunsu East Gumusut/Kakap Kikeh FDP Approved
Gas (Gas) Oil Discovery First SPAR in Malaysia
Discovered Discovery First GAP Application in
the World
Malikai Oil Discovery
First SBL Application in
Malikai
Source: Petronas
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10. Deepwater/ Ultra Deepwater Discoveries
Field name Recoverable Water Onstream Operator
Depth Date
Kikeh 536 mmboe 1,300 m Q2/Q3 2007 Murphy Oil
Gumusut/ 620 mmboe 1,100 m Q4 2010/ Shell
Kakap Q1 2011
Malikai 108 mmboe 480 m Q2 2011 Shell
Kebabangan 2.2 tscf > 200 m Q3 2011 ConocoPhillips
Jangas 81 mmboe >1000 m Q4 2011 Murphy Oil
Ubah Crest 215 mmboe >1000 m Q2 2012 Shell
Pisangan 56 mmboe >1000 m Q3 2012 Shell
Kamunsu 2.2 tscf >1000 m Q2 2013 Shell
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11. Fast Track Implementation of Deepwater Projects
2007 2008 2009 2010 2011 2012 2013
Kikeh
Gumusut/Kakap
Malikai
Kebabangan
Jangas
Legend
Indicative
first oil
Ubah Crest
Exploration
Strategy
Exploration Pisangan
Appraisal & Reservoir
Evaluation
Kamunsu
Field Development Studies
Preliminary Engineering
Project Implementation
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12. 43 Deepwater Exploration Wells Planned 2007-
2010
15
11 11 11
10 10
10
5
0
2006 2007 2008 2009 2010
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13. Malaysia: Total expenditure: USD35,683 million
Expenditure Breakdown 2007-2010
Decommissioning 438
Downhole & Well Services 2,110
Operations 8,558
Modifications 10,053
Maintenance 5,868
91
Marine Systems & Equipment
E, I & T 83
Platform Design & Project Management 289
656
Floating Platforms
Fixed Platforms 2,953
972
Subsea Technologies and Equipment
Offshore Drilling 6,299
Reservoir Management 113
Seismic Data Acquisition 430
- 2,000 4,000 6,000 8,000 10,000 12,000
US$ million
Source: Infield/INTSOK
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14. Malaysia is looking for companies to establish
strong bases in Malaysia
Key Areas Key Activities
Development Concept FEED & Feasibility Studies
Topside Design
Support Structure Engineering
Hull Design – Dry Tree units (DTU)
Hull Design – Floating Vessels/Wet
Tree Units
Support Structure Fabrication Fabrication – Topside & Hull
Flowline & Risers
Design, Engineering &
Umbilical/Fluid Transfer Lines (FTL)
Manufacturing
Subsea Modules
Installation Pipeline installation
Source: Petronas
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15. Other Areas of Opportunities/ challenges
• Strategic alliance with Petronas – capacity building
• Small or marginal fields Development
• Brown Fields development
• High CO2 content
• Enhanced Oil Recovery in matured fields
• Demand for rigs/ semi-sub
• Marine vessels
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16. Norwegian companies in O&G sector
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17. Planned Events 2007
• Jan: Resource Management by Petronas/Petrad
• June 6-7: Pipeline Integrity workshop by Petronas/Intsok/
Petrad
• June 13-15: Norwegian Pavilion at Oil & Gas Asia Exhibition
• June 25-29: PETRONAS Delegation to Norway by IN KL/Intsok
• Nov 26-28: Deepwater Technology workshop by Petronas/
Intsok/ Petrad
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18. Malaysia: Business Culture
• Multi-racial & multi-cultural society - 3
major distinct races. Advantage to
differentiate races for business and social
reasons
• Personal relations are important for
business. Building trust takes time
• Consciousness in social hierarchy
• Reflected in hierarchical structures of
Malaysian companies
• Honorific Titles- Datuk, Dato, Datuk Seri,
Tan Sri & Tun.
• Importance of Designation
• Face Value – has a lot of significance in
workplace and business relations. Once a
person loses face, he/she may withdraw
from the interactions of business negotiation
altogether.
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19. Malaysia: Business Culture
• Respect for elders by the way one
speaks, addresses or behaves
towards one’s elder.
• Managers or leaders are
considered “elders” and wise.
Decisions of leaders hardly
challenged.
• Understand the Decision Making
Process of the organization you
are dealing with – crucial for
business success
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