Maximizing the field value at cost effective operation challenges in Malaysia

Abstract

JX Nippon Oil & Gas Exploration (Malaysia) Limited (JX Nippon) is the operator of offshore gas field (Block SK10). The field has produced over 1 Tcf of natural gas since the 1^st production in 2003 with an outstanding record of no Lost Time Injury (LTI) operation for 12 years. Various operation optimization and cost reduction efforts have been carried out since the beginning of the field.

Operation optimization and cost reduction would be a one of the most relevant practices in upstream companies. However, the recent oil price decline enforces all parties in the industries, to take immediate and robust actions for further cost reduction to sustain and remain secure the business.

This paper introduces challenges and approaches for cost effective operation by JX Nippon for Block SK10 gas field. These approaches are not limited to individual Petroleum Arrangement Contractor (PAC) efforts but also activities under a nationwide alliance among Petroliam Nasional Berhad (PETRONAS) and all the PACs.