Technology Challenges in Asia 2014 Offshore Technology Conference Panel Session 4 Datuk Ir. (Dr) Abdul Rahim Hj Hashim Vice Chancellor / CEO Universiti Teknologi PETRONAS © 2014 PETROLIAM NASIONAL BERHAD (PETRONAS) All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner. Demand of Fossil Fuels as Source of Energy Continues to Grow to support the Power Generation, Industry and Transportation needs World Energy Demand By Primary Use By Fuel Oil Production Oil Consumption Asia Pacific - World demand for energy continues to grow. - Fossil fuel will still be the dominant source of energy. - Gas is growing very fast. - Increasing demand drives the development and production of oil and gas reserves. - Rapid increase in the consumption of oil as source of energy in the Asia region. - China economic growth is driving the rise of demand of LNG in China. - Demand of LNG in Japan is expected to be constant despite nuclear restart Challenges for Technology from Business Strategy Point of View • Local content requirement for local ownership of operations • Transfer of knowledge and capability to domestic industry Stricter country regulations Energy change & climate policy Field/Asset complexity • Stricter emission standards for CO2 and other gas emissions for operators • Shifting policy towards diversification of national energy mix • Complex geological formation which is compatible with current technology • Asset Integrity and safety Source: SPE 2010 – R&D in the Energy Industry PETRONAS EP undertakes focused technology developments in several focus areas to Address the Challenges Example Lowering Costs Increasing Efficiency Creating Game-changers EOR Field Chemicals Produced Water Management DEMULSIFIER / DEOILER SELECTION DEFOAMER SELECTION GEO-IMAGING CO2 MANAGEMENT OPERATIONAL EXCELLENCE Gas Clouds Salt/PreSalt Seismic Reservoir Characterization 4D Reservoir Monitoring Membrane Systems Cryogenics Pretreatments Systems Pipeline Rehabilitation New Materials Intelligent Drilling EM Transmitter Enhanced Oil Recovery from mature fields & Advance Seismic Imaging to Improve Understanding and Unlock the Resources in the Subsurface BARONIA BARAM Technology Challenges: • Increase Recovery Factor for mature oil fields. • Increase and mature prospective resource; BETTY • Structural uncertainties BOKOR TUKAU W. Lutong • Poorly defined structural trap and reservoirs • Bypassed Hydrocarbon fill and under/over estimation of reserves • Reservoir surveillance, monitoring and management activities; Technology to Unlock Access to High CO2 Resource and Meet Global Environmental Concerns CAPTURE TRANSPORT STORAGE Technology Challenges: • Economic cost of development and production • Higher technology performance • Higher safety standards for underground storage Operational Excellence Technology to Ensure the Safety, License to Operate, and Performance of Assets Technology Challenges: Asset Integrity • Pipeline Corrosion • Ageing Facility • Safety Flow assurance issues: • Wax • Hydrates • Thermal • Scale • Sand Production Environmental impact: • Emission • Contaminated Hydrocarbon (CO2, Mercury) Effective Cooperation Models will Result in Impactful Responses to Technology Challenges Approach Corporate Investment • Acquisitions • Venture capital funding Talent Management • Enticing recruitment programmes • Structured & accelerated development for technical staff • Competitive remuneration Collaborations • Academia • Industry players • Government Contractor Management • Contractmanagement program • Preferred contractors with most efficient technologies and cost Inputs to Approach Technology Acquisition Key Characteristic of Partner Make R&D efficiency and effectiveness Buy Supplier/partner assessment Collaborate Partnership type definition Cooperation Models Joint Industry Projects Collaboration Alliance PETRONAS owns 2 research arms to find new technology innovations Example PETRONAS Research Sdn. Bhd MS ISO 9001 MS ISO/IEC 17025 OHSAS 18001 Total staff strength: 265 staff Technical Professionals: 21 staff PhD and MSC Holders: 61 staff Expatriates: 12 staff Universiti Teknologi PETRONAS Total staff strength: 332 staff PhD and MSC Holders: 199 staff Expatriates: 84 staff Subsurface characterisation and Interactions Chemicals Process Technologies Advanced Materials Specialised Products EOR CO2 Management Deepwater Nanotechnology Green Technology Biomed Tech Hybrid Energy Intelligent Cities Sustainable Resources Mission Oriented Researches (MORs) and R&D UTP Centers COEs & Research Centers to drive R&D National COEs  The appointment of UTP Centre of Innovative Nanostructures & Nanodevices (COINN) as one of Malaysian Nano Centres of Excellence in 2011. UTP COEs • • Enhanced Oil Recovery Green Technology MISSION ORIENTED RESEARCH (MOR) Sustainable Resources Deepwater Technology Intelligent City (I-City) Nano Technology Biomedical Technology • Research Centres Hybrid Energy System Carbon Dioxide Mgmt • • • • • • • • • • South East Asia Research Carbonate Lab (SEACARL) Center for Research for Enhanced Oil Recovery (COREOR) Subsurface Seismic Imaging & Hydrocarbon Prediction Centre CO2 Capture Research Centre (CO2CRC) Center for Corrosion Research (CCR) Offshore Engineering Centre (OEC) Gas Separation Research Centre (GSRC) PETRONAS Ionic Liquid Center (PILC) Centre for Automotive Research Centre of Innovative Nanostructures & Nanodevices Centre for Biofuel & Biochemical Research Centre for Org. & Cultural Studies of Oil and Gas Business Centre for Intelligent Signal & Imaging Research (CISIR) is pending MOHE’s site visit & assessment for National Hi-COE UTP Research Framework MOR External Parties COE Mission-Oriented Research (MOR) focusing on thematic Requirements of External Centres of Excellence Parties Including IHLs, addressing niche research area areas on research that could enhance the nation competitiveness CO2 Management Deepwater Nanotechnology Green Technology Biomed Tech Hybrid Energy Intelligent Cities Sustainable Resources & Industries COREOR – EOR EOR MOR focuses Research Institute COE focuses on research that could enhance specific clients’ competitiveness RCCO2 – CO2 Management OEC – Offshore GSRC – Gas Separation CCR – Corrosion Research PILC – Ionic Liquids CBBR – Biomass/Biofuels CISIR – Imaging Tech CAREM – Power Generation Strategic Collaborations UTP Strategic Collaborations Basic research Applied research Development & Engineering Established Strategic Alliances Networking University & Research Institution = 53 (44 intl.); Industry = 22 (3 intl.) Companies for Internship Placement = 400 (local & intl.) Testing & services Recent Deployment of Technologies have Successfully Unlocked additional Resources To add more than 700 MMSTB, Water Alternating Gas (WA G) processes, Chemical EOR, Thermal EOR and Enhanced WA G To uncover reservoir reserves addition & upside potential Hysterisis Pre-HM Tool Full Wave Inversion WBD Sequence Stratigraphic • Seismic Waveform Classification • • • • Technology Geo-Imaging Technology Enhanced Oil Recovery • Gas Cloud Imaging • Seismic Reservoir Characterization • 4D Reservoir Monitoring THE END