openPR Logo
Press release

Observers: Petronas can boost revenue and recovery with optimisation

04-06-2011 03:20 PM CET | Energy & Environment

Press release from: Arc Media Global

Optimising solutions can increase daily production by 30 to 300 percent, corresponding to estimated RM 6 billion to RM 60 billion in lost revenue for 2010

SINGAPORE (6 April 2011) – With Petronas’ recovery factor for main oilfields currently standing at close to 26 percent, more can be done to increase recovery rates and boost production. An observer commented, “Not that they can’t have a higher recovery rate, but expertise and technology do play an important role in the recovery of marginal fields.” Lower recovery means less revenue for the same financial outlay, damaging profitability and company health for both the near-term and the long-term.

Malaysia’s oil and gas industry comprises a full one-fifth (20%) of the country’s gross domestic product, so damage to its oil business is damage to the entire economy. Last year, the country’s O&G exports amounted to RM101.2 billion, up 24 per cent from 2009. The annual average rate of growth is 13.5 per cent for the past 10 years, and exports are set to rise with increasing volatility of global oil prices as a result of unrest in Arab countries. At least, there’s a silver lining in the short term. “Currently, Malaysia is a net oil exporter so we gain more than we lose,” says Dr Wong Lai Sum, Malaysia External Trade Development Corp (Matrade) deputy chief executive officer of trade and services promotion.

_Complacency the Hidden Hindrance to Production Level Increases_

Increased recovery can help sustain oil revenues and increase profitability of exports. However, minimisation of startup costs often-practiced is hardly sufficient to encourage and enable optimised production. “People should not think about how expensive technology is, but rather how much value it can bring,” comments a technical expert from world-leading services provider Schlumberger. What’s more, recent major oil and gas discoveries which temporarily arrest production declines may have lulled the industry into complacency, overlooking extra production income from optimised well operations. Depending on the final product, every 100,000 barrels of lost daily production corresponds to almost $12,000,000 per day in lost revenue.

Alignment between the technical and strategic functions and breaking down silos in oil companies like Petronas are key, as well as alignment from planning to execution. “A lot of good efforts die if the field is not aligned with engineering,” continues the same Schlumberger expert.

_Technical-Strategic Alignment is Key_

Daily production can be increased by 30 to 300 per cent with an informed and integrated technical and strategic approach. According to Greg Borovsky, Chief Marketing Officer of US-based Plutus Inc, Slow Optimization Solutions maintain crude production levels without shutting down wells. Extra revenues are earned from no downtime and paraffin is refined and returned to the original good crude oil phase. He adds, “wells do not need to be shut down for days for traditional hot oil monthly treatments, so companies do not have to sacrifice the production income for those days.”

For revved exports, higher profitability and greater environmental compatibility, it is imperative for the O&G sector as a whole to leverage on optimising solutions, methods and techniques as well as shore up peer operating practices now with more than 50 wells expected to be drilled offshore Malaysia in the next three years.

Some fundamental questions need to be asked/answered:
• Is my commercial team on the same page as my engineering team when it comes to production optimisation needs?
• If the whole management team is on board to increase production and increase revenue, how can we motivate our technical personnel on the field to do the extra work and take the extra stress for the same pay?
• What is the total cost savings and extra revenue we can achieve with the array of optimisation approaches available?
• What are the optimisation approaches available currently, and what support does each need from the management, the CFO and the commercial side of the business?
• Which options are compatible with our overall business model and strategy?
• Once we’ve raised our production levels and increased our revenue, where should we re-invest the additional profits?

_Production Optimisation Week Asia Welcomes Deputy Minister_

The Center for Energy Sustainability and Economics is convening Production Optimisation Week Asia (POWA) 2011 from 25th to 29th July 2011 in Kuala Lumpur Malaysia to help oil companies such as state-owned oil companies from as far as the Africa, South America and the Middle East to generate alignment to boost recovery and revenue and come together for informed and integrated approaches to a diverse variety of conditions. The meeting will involve senior company executives as well as functional heads in charge of reservoir engineering, production engineering, drilling and completions engineering, particularly those involved with each company’s mature, marginal, deepwater and other technically and commercially challenging fields.

# # #

If you’d like more information about this topic, or to schedule an interview with the speakers at
POWA 2011, please call Eunice Wee at (+65) 6844 2080 or email Eunice at

Keywords: Petronas, recovery, marginal fields, recovery, oil exports, Matrade, Schlumberger, Plutus, Slow Optimization Solutions

The Center for Energy Sustainability and Economics (Center for Energy) is an industry research centre (IRC) that works to bring top executives together in communities of learning and practice to act as a catalyst for generating high-value energy business insight and channel top expertise to where the world needs it most. Meetings by the Center for Energy are managed by Arc Media Global, the world’s first B2B/G2B integrated marketing specialist headquartered in Singapore.

Contact: Eunice Wee
Arc Media Global
(+65) 6844 2080
PO Box 176 Robinson Road, Singapore 900326

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Observers: Petronas can boost revenue and recovery with optimisation here

News-ID: 169877 • Views: 1396

More Releases from Arc Media Global

ASEAN Inc’s Chiefs prove the case for mindful leadership at HR Talk Show 2018
Over 40 CXOs and 500 top HR leaders in ASEAN distill insights into the power of mindfulness to achieve high dividend yields and employee well-being in today’s tumultuous age of speed. 12 June 2018 (KUALA LUMPUR). ASEAN’s only Talk Show serving the Human Capital Management community welcomes over 40 change leaders at the HR Talk Show 2018 on September 5, 2018 in Kuala Lumpur, Malaysia—leading over 500 HR leaders to
The elusive brain drain in oil and gas
SINGAPORE (5 Aug 2011) – 2011 marks intensified recruitment targets for oil and gas companies globally. The war for talent is on for hard-to-find petrotechnical professionals (PTPs) and the pressure is on to develop hard-to-retain operations people. With the generation of geoscientists and petroleum engineers hired before the deep recruitment cuts of the mid-1980s approaching retirement, new talent distribution now centred on Asia and Russia and changes in gender ratios,
Territorial disputes on E&P in Asia ramps up as China Sea explored
SINGAPORE (4 Aug 2011) – Blistering economic growth across Asia over the past few decades has cranked up anxiety levels amongst governments about energy supplies. Asia’s state-run NOCs have become more confident about searching out new oil and gas assets in foreign fields, with such pressure erupting tensions over offshore overlapping sovereignty claims in the South China Sea, where maritime borders are not clearly defined and often overlap. What’s the status
Managing medical costs in retirement
SINGAPORE (7 July 2011) – A study commissioned by the Council for Third Age (C3A) revealed that close to half or 44 per cent of Singaporeans and permanent residents polled did not regard retirement here as affordable, with many citing high medical costs as a major deterrent. It appears that the general perception locally and abroad is that it is expensive to retire in the city state. The cost of

All 5 Releases

More Releases for Malaysia

Ophthalmology Market in Malaysia, Ophthalmology Industry in Malaysia, Covid-19 I …
Lower Ophthalmology Costs in Malaysia: Ophthalmology cost in Malaysia is estimated to be comparatively less i.e. 40% less or even more than the spending made by a patient on an average for the same treatment in the US and European countries such as the UK, France, Germany and others. Low cost of Ophthalmology in Malaysia allows patients from the other countries to save a significant amount of money while benefiting
Malaysia Ophthalmology Market, Malaysia Ophthalmology Industry, Malaysia Ophthal …
The report titled “Malaysia Ophthalmology Market Outlook to 2025- Increase in Ophthalmic Surgeries & Consultations driven by Increasing Ageing Population Proportion and Ophthalmology Technological Advancements" provides a comprehensive analysis of Ophthalmology Services in Malaysia. The report covers various aspects including market size (Total Revenue, Consultations Revenue, Number of Consultations, Surgery Revenue and Number of Surgeries), Market Segmentations by Clinic Specialty (Multi & Single Specialty), by Private and Public Clinics/Hospitals, By
Malaysia Agriculture Market, Malaysia Agriculture Industry, Malaysia Agriculture …
Agriculture sector is an important sector of Malaysia's economy. There are mainly 3 crops are produced including palm oil, rubber and cocoa. Additionally, country’s farmers produce a number of fruits & vegetables for the domestic market such as bananas, pineapples, coconuts, durian, cabbage, cucumber, long beans, tomato, chilli, okra, spinach, rice, rambutan and others. Country’s tropical climate is extremely favorable for the production of a variety of exotic fruits &
Agrochemicals Market in Malaysia
ReportsWorldwide has announced the addition of a new report title Malaysia: Agrochemicals: Market Intelligence (2016-2021) to its growing collection of premium market research reports. The report “Malaysia: Agrochemicals: Market Intelligence (2016-2021)” provides market intelligence on the different market segments, based on type, active ingredient, formulation, crop, and pest. Market size and forecast (2016-2021) has been provided in terms of both, value (000 USD) and volume (000 KG) in the report. A
Infrastructure Insight: Malaysia
MarketResearchReports.Biz presents this most up-to-date research on "Infrastructure Insight: Malaysia" Description This report provides a detailed look into the infrastructure sector in Malaysia, including analysis of the state of the current infrastructure, the regulatory and financing landscapes and the major projects in the construction pipeline. The report covers all key infrastructure sectors: roads, railways, electricity and power, water and sewerage, communication, and airports and ports. Summary Malaysia is expected to see some of the fastest
Pet Project Malaysia 2013
To be held on 23rd March, 2013 (from 9am to 6pm) at The British International School of Kuala Lumpur in association with Expatriate Lifestyle, Pet Project Malaysia is BACK and we are once again “Getting Active to Help Save Animals”. Created in 2011, this is an event to unify the community in supporting animal welfare by doing something FUN and proactive. This event is open to the public and we