Zamri Jusoh, Vice President, Malayasia Petroleum Management

2016 Asia-Pacific Assembly and Awards
Surviving in a Low Price
Environment – NOC Perspective
M Zamri Jusoh
Vice President, PETRONAS
27 January 2016
Raffles City Convention Centre, Singapore
© 2016 PETROLIAM NASIONAL BERHAD (PETRONAS)
2016 APAC Keynote
VP MPM
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©Petroliam Nasional Berhad (PETRONAS) 2016
1
The WHITE ELEPHANT in the room
BREAK
The level of oil price has
again shocked us by
breaking the unthinkable
$30/bbl
Dated Brent Daily Historical Price (US$ per bbl)
120
Jan ’14
US$108/b
bl
June ’14
US$111/bbl
CO$T & CA$H
2015 was a big adjustment
year to survive, managing
the reality. Some were
ready, most were reactive.
Major cutbacks happened.
100
80
Oct ’14
US$87/bbl
Jun ’15
US$62/bbl
60
SURVIVE
40
Jan ‘15
US$48/bbl
Jan ‘16
US$28/bbl
We are bracing yet again
into the new normal
20
Note: Daily price up to 18 Jan 2016
2016 APAC Keynote
VP MPM
©Petroliam Nasional Berhad (PETRONAS) 2016
2
Evolution of Malaysia’s E&P Industry
Malaysia’s E&P industry has grown significantly over the years; not only are the
dimensions bigger but are also getting more complicated to manage
Production & Reserves
•
•
•
•
Increasing gas production with increasing contaminants
Plateauing oil production and remaining reserves
Increasing complexities both subsurface and surface
Increasing diversity of commercial arrangements and players
Oil & Gas Production
In ‘000 barrels of oil
equivalent per day (kboe/d)
2 000
1 800
Dwindling oil
production
23 Bboe
20
19
Remaining
Reserves
16
21
98
70
800
45
More
complex
development
options
30
20
600
?
Gas demand
pressures
400
200
0
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
Petroleum
Arrangements
Players
Oil & condensates
(kbd)
5
2
1 400
1 000
60
8
1 600
1 200
Stranded
resources
106 PACs
Gas
(kboed)
12
5
Highly
contaminated
gas reserves
Concessio
n
Agreement
1976 PSC
1985 PSC
DW/
Ultra
DW
PSC
R/C PSC
Major IOCs: Shell, ExxonMobil
Independents:
Total, Murphy, ConocoPhilips, Repsol, Mubadala, EnQuest
HP/
HT
PSC
RSC
DW
Gas
&
PV
B
Sustainability
of E&P
activities in
Malaysia
Balancing
value vs
growth
SF Players:
Roc Oil, Cepsa
Locals: Uzma, SK
2
Energy, Petra
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©Petroliam Nasional Berhad (PETRONAS) 2016
34
More ‘unique’
PAC players
3
MANAGE
ENABLE
Resource management role has
taken a different twist to continue to
attract and retain value creating
investments in Malaysia
Creating value is a
RESPONSIBILITY
COMMERCIALITY
Improve fiscal terms and contracts
structure & technology
deployments
COLLABORAT ION
Collaborate with industry players to
reduce and optimize costs
2016 APAC Keynote
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©Petroliam Nasional Berhad (PETRONAS) 2016
4
SURVIVABILITY drives continuous
innovation
Discoveries
EO
R
Tax incentives –
for challenging
projects
Deep
High water
CO2
Efforts
Encourage new
ideas / technology
Mega
seismic
FLN
SSGP G
Monetizations
2016 APAC Keynote
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©Petroliam Nasional Berhad (PETRONAS) 2016
5
REIMAGINING Cost Competitiveness
RM
2.4B
2015 projected
savings
Warehouse
Centralization &
Common
Stocking
Logistic
Control
Tower
CAPEX
Benchmarking
Joint Sourcing
Materials
KEY
ACHIEVEMENTS
Technical
Standards
Joint Sourcing
Services
(Logistics)
2016 APAC Keynote
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©Petroliam Nasional Berhad (PETRONAS) 2016
LFLO
OPEX
Benchmarking
6
THANK YOU
reimagining energyTM
In a world of constant change, we
work together to find innovative
solutions and push performance
boundaries. It is a collective
commitment to take control and
ownership of our destiny by having
the courage to pursue a new path
and direction.
2016 APAC Keynote
VP MPM
©Petroliam Nasional Berhad (PETRONAS) 2016
7