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FACULTY OF CHEMICAL AND RENEWABLE ENERGY ENGINEERING

(FCEE)

UNIVERSITI TEKNOLOGI MALAYSIA

SKPP3113

EVALUATION & MANAGEMENT OF PETROLEUM

PROJECTS

Nam HUSSAIN BIN HAKIMUDDIN

A13KP!!33

WAN MOHD FIKRRY BIN ABDULLAH

A13KP!13"

GAJENDRAN A#L RAMASAMY

A13KP!!31

HEMAKKESHA A#L ARUMUGAM

A13KP!!3"

S$%m'' Da* 1+*, Ma- "!1.

S/* SN !"

L/*$00' Nam ASSOC2 PROF2DR2 MUHAMMAD BIN MANAN

Ma0' (4)

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Table of Content

LIST OF FIGURES…………………………………………………………………..3

INTRODUCTION……………………………………………………………………4

BACKGROUND OF PROJECT…………………………………………………..…5-7

1ST FIELD DEVELOPENT PROJECT……………………………………………!-11

". C#$%&a'%#&() NCF B*"+% P",e+"$e"". Pe'%() NCF B*"+% P",e+"$e

ND FIELD DEVELOPENT PROJECT…………………………………………..11-14

". C#$%&a'%#&() NCF S/a&e0 P",e+"$e"". Pe'%() NCF S/a&e0 P",e+"$e

FIELD DATA ANALSIS…………………………………………………………14

DECISION AKING………………………………………………………………15

CONCLUSION………………………………………………………………..........12

REFERENCES……………………………………………………………………...17

L'* 6 67$0'

" 5 P a g e


3/18

F7$0 1 8 T, ma9 6 *, 6:; *0'* !.!? E@ = >1 3.? N

F7$0 " 8 T, 70a9, 6 P0;$/* Ra* a7a'* Ya0

F7$0 3 8N* /a', 6:< P06: 6 C*0a/*0 60 S,a0; P9:F7$0 8 T, 70a9, 6 N* 90'* a:$ a7a'* D'/$* 0a*

F7$0 > 8 N* /a', F:< P06: 6 P0/* 60 S,a0; P9:

F7$0 . 8 T, 70a9, 6 N* 90'* a:$ a7a'* D'/$* 0a*

F7$0 + 8 T, 70a9, 6 P0;$/* Ra* a7a'* Ya0

F7$0 8 N* Ca', F:< P06: 6 C*0a/*0 60 FPSO

F7$0 8 T, 70a9, 6 N* 90'* a:$ a7a'* D'/$* 0a*

F7$0 1! 8 N* Ca', F:< 6 P0/* 60 FPSO

F7$0 11 8 T, 70a9, 6 N* 90'* a:$ a7a'* D'/$* 0a*

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INTRODUCTION

T/") Ea+*a%"#$ a$0 a$agee$% ,e'% ") %/e )%*0 #6 e'#$##"' ea+*a%"#$ #& %/e

#,e&a%"#$ #6 BETA PSC B+#' . O%/e& %/a$ %/a% 8 %/e ,*&,#)e #6 %/") ea+*a%"#$ 9e"$g 'a&&"e0

#*% ") 6#& F"e+0 Dee+#,e$%. Be)"0e)8 %/e #9e'%"e) #6 %/e e'#$#"' ea+*a%"#$ a&e %# )e'*&e

$e: ,e%+e* a'&eage 9 9"00"$g %/e Na%"#$a+ O"+ C#,a$"e) a$0 a+)# 6#& )a+e a$0

e;'/a$ge #6 ,e%+e* a))e%). Ne;%8 "%() *)e0 6#& *$"%"


5/18

PROBABILITY STOIIP (MMSTB)

P! 33P>! 44P1! 57

G0a: Da*a 6 *, F:;

1. O"+ ,&"'e 12 USD45.99+

. Ga) ,&"'e 12 USD3.5BTU >LNG 9a)e ,&"'e?

3. O"+ P&"'e E)'a+a%"#$ 5 ,e& ea&

4. Ga) ,&"'e e)'a+a%"#$ 5 ,e& ea&

5. C#)% E)'a+a%"#$ 5 ,e& ea&

2. E;'/a$ge &a%e R4. %# USD1.

7. O"+ ,*'%"#$ Pea &a%e ,e& :e++ 4 STB0

!. O"+ ,ea &a%e 4 #6 STOIIP ,e& ea& >5 ea&)?

. O"+ %/*g/,*% 6ee #6 USD199+ ") '/a&ge0

1. O"+ a$0 ga) >"6 a$? a&e e;,#&%e0

11. S#+*%"#$ Ga) O"+ Ra%"# 7! SCFSTB

1. S%a&% ,*'%"#$ "$

T# 6"$0 %/e $*9e& #6 :e++) 0*&"$g %/e ,ea &a%e #6 #"+ ,*'%"#$

H a; 4 ; 33 STB ; 5 ea&)

22 STB ea&

T#%a+ $*9e& #6 :e++) a% ,ea &a%e 66 MMSTB

4000×365days×5 years

.4

:e++

F"g*&e 1 @ T/e a, #6 %/e 6"e+0 "$%e&e)% :"%/ '##&0"$a%e #6 154(1 E8 4 41( 4 N

> 5 P a g e

154(1 E8 4 41( 4 N


6/18

F#& %/") ,e'% #6 e'#$#"' ea+*a%"#$ ") *$0e& 1!5 PSC a&&a$gee$% $eg+"g"9+e %/e

#"$% e$%*&e e+ee$%. O*& g*, )*gge)%e0 %/&ee )'e$a&"#)6#& %/e ,*'%"#$ :/"'/ ")

)*"%a9+e 6#& %/e g"e$ '##&0"$a%e . . T/e '##&0"$a%e g"e$ :a) 8 1135(2 E8 4 51( 32 N8 "%

. 5 P a g e

154(1E8 441(4N


7/18

") +#'a%e0 #66)/#&e #6 Te&&e$ga$* . T/e g"e$ '##&'"$a%e0 ") a9#*% 1!3.47 6 Keaa$

S*,,+ Ba)e >KSB? .

e /ae 'ae *, :"%/ )ee&a+ "0ea) a$0 )#+*%"#$ 6#& 6"e+0 0ee+#,e$% ,e'% . F#&

#*& g*,8 9a)"'a++ :e a$age0 %# ea+*a%e %/&ee 0"66e&e$% :a) #6 #,e&a%"$g ,+a$$"$g.

F"&)%+8 %/e '#,a$ 9*"+% *, %/e"& #:$ ,",e+"$e 6 %/e 6"e+0 #6 "$%e&e)% %# Keaa$ S*,,+

Ba)e 6#& 1!3.47 6#& +e$g%/. A,a&% 6 %/a%8 %/e )e'#$0 )'e$a&"#) ") 33.47 9*"+% *, #"+

,",e+"$e :/"'/ ") #:$e0 9 %/e '#,a$ a$0 &e$% a9#*% 15 #6 #"+ ,",e+"$e "$ . T/e&e6#&e

%/e %#%a+ +e$g%/ #6 %/e #"+ ,",e+"$e 6#& )e'#$0 )'e$a&"#) ") a9#*% 1!3.47. La)%+8 :e :e&e

,+a$$"$g #6 &e$%"$g a F+#a%"$g P*'%"#$ S%#&age O66+#a0"$g >FPSO? :/"'/ ") &ea++

e;,e$)"e.

T/") ,e'% )/#*+0 9e ea+*a%e0 9a)e0 #$ )ee&a+ #6 e'#$#"' "$0"'a%#& "$ #&0e& %#

a))e)) %/e 6ea)"9"+"% 6#& ,e'% e;,a$)"#$ #& a''e+e&a%"#$. T/e e;a,+e #6 e'#$#"'

"$0"'a%#&) a&e a;"* 'a)/ )"$8 9&eaee$8 ,a9a' ,e&"#08 e'#$#"' +""%8 e'#$#"'

+"6e8 *+%"a%e 'a)/ 6+#:8 ,"% "$e)%e$% &a%"# >PIR?8 $e% ,&e)e$% a+*e >NPV?8 a$0 +a)%+ %/e

"$%e&$a+ &a%e #6 &e%*&$ >IRR?.

I$ #&0e& %# "0e$%"6 %/e #)% e66"'"e$% e%/#0 6#& %/e 6"e+0 0ee+#,e$% ,e'%8 :e

/ae %# ea+*a%e %/e 9a)"' 0a%a g"e$ a$0 '#,a&e %/e a+*e #6 I$%e&$a+ Ra%e #6 Re%*&$ #6

ea'/ "0ea.

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8/18

OPTION 1 FIELD DEVELOPMENT PROJECT

T,e @ O"+ P",e+"$eDe%a"+) @ 1? 15 "$ +e$g%/ 9*"+% *, #:$ ,",e+"$e ? 33.47 &e$% 6 #"+ ,",e+"$e

3? Re$%a+ ,e& 0a ,e& 3DevelopmentCost RM

4 leg Jacket 480,000,000.00

Topside 720,000,000.00

Topside & CPP 920,000,000.00

Pipeline 60,000,000.00

9 well 720,000,000.00

Total Cost 2,900,000,000.00

C*0a/*0' NCF S,a0; P9:

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

0,000.00

5,000.00

40,000.00

T!e g"ap! o# p"od$ction "ate against %ea"

Year

Production Rate (T!"

F"g*&e @ T/e g&a,/ #6 P*'%"#$ Ra%e aga"$)% ea&

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9/18

4,000,000,000.00'

,000,000,000.00'

2,000,000,000.00'

1,000,000,000.00'

0.00

1,000,000,000.00

2,000,000,000.00

,000,000,000.00

C#$ %&' PR'%)&*

(et Cas! )low C$*$lati+e (et Cas! )low

Year

+et Cas %lo- (MYR"

F"g*&e 3@ Ne% 'a)/ 6+#: P"+e #6 C#$%&a'%#& 6#& S/a&e0 P",e+"$e

isco$nt -ates

(et P"esent

al$e(P'5/ 498,08,726.86

10/ -12,67,569.96'

20/ -98,97,286.21'

0/ -454,895,2.62'

40/ -415,065,478.00'

50/ -5,976,620.41'

60/ -294,867,578.62'

70/ -244,02,101.68'

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10/18

0.1 0.2 0. 0.4 0.5 0.6 0.7

-500,000,000.00'

-400,000,000.00'

-00,000,000.00'

-200,000,000.00'

-100,000,000.00'

-0.00

-100,000,000.00

T!e g"ap! o# (et P"esent al$e against isco$nt -ate

Discount rate ("

+et Present /#lue (MYR"

F"g*&e 4@ T/e g&a,/ #6 Ne% ,&e)e$% a+*e aga"$)% D")'#*$% &a%e

F %/e g&a,/ a9#e8 :e :e&e #9%a"$e0 %/e a+*e #6 I$%e&$a+ Ra%e #6 Re%*&$ :/"'/ a) )/#:$ 9e+#:.

nte"nal -ate o# -et$"n --'9.811710/

at (P30

P0/*' NCF S,a0; P9:

4,000,000,000.00'

2,000,000,000.00'

0.00

2,000,000,000.00

4,000,000,000.00

6,000,000,000.00

8,000,000,000.00

10,000,000,000.00

12,000,000,000.00

C#$ %&' PR'%)&*

(C) a#te" ta C$*$lati+e (C) a#te" ta

Year

+et cas %lo- (MYR"

F"g*&e 5@ Ne% 'a)/ F+#: P"+e #6 Pe'% 6#& S/a&e0 P",e+"$e

isco$nt-ates

(et P"esental$e(P'

1/-8,650,485,096.

97

5/

-5,27,082,891.

9010/ -2,850,598,649.

1! 5 P a g e


11/18

62

20/-756,059,97.2

8

0/ -70,757,424.7

40/

-152,606,66.

81'

0.01 0.05 0.1 0.2 0. 0.4-2,000,000,000.00'

-0.00

-2,000,000,000.00

-4,000,000,000.00

-6,000,000,000.00

-8,000,000,000.00

-10,000,000,000.00

-12,000,000,000.00

T!e g"ap! o# (et p"esent al$e against isco$nt "ate

Discount Rates

+et Pesent /alue (MYR"



nte"nal -ate o# -et$"n --'2.116170/

at (P30

OPTION " DEVELOPMENT PROJECT

T,e @ F+#a%"$g P*'%"#$ S%#&age O66+#a0"$g >FPSO?De%a"+) @ 1? Re$% ? 3458 ,e& 0a

DevelopmentCost RM

4 leg Jacket 480,000,000.00

Topside 720,000,000.00

Topside & CPP 920,000,000.00

)P 50,700,000.00

9 well 720,000,000.00

Total Cost ,1,00,000.00

C*0a/*0' NCF FPSO

11 5 P a g e


12/18

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

0,000.00

5,000.00

40,000.00

T!e g"ap! o# P"od$ction "ate against ea"

Year

Production Rate (MYR"

F"g*&e 7@ T/e g&a,/ #6 P*'%"#$ Ra%e aga"$)% ea&

1" 5 P a g e


13/18

4,000,000,000.00'

,000,000,000.00'

2,000,000,000.00'

1,000,000,000.00'

0.00

1,000,000,000.00

2,000,000,000.00

,000,000,000.00

C#$ %&' PR'%)&*

(et Cas! )low C$*$lati+e (et Cas! )low

F"g*&e !@ Ne% Ca)/ F+#: P"+e #6 C#$%&a'%#& 6#& FPSO

isco$nt -ates(et P"esent al$e(P'

1/ -195,07,500.14

5/ -17,644,01.11'

10/ -252,176,667.6'

20/ -469,589,714.99'

0/ -48,982,486.41'

40/ -428,70,006.54'

50/ -59,825,556.1'

60/ -296,201,485.68'

70/ -242,624,.72'

0.010.05 0.1 0.2 0. 0.4 0.5 0.6 0.7

-600,000,000.00'

-400,000,000.00'

-200,000,000.00'

-0.00

-200,000,000.00

T!e g"ap! o# (et P"esent al$e against isco$nt "ate

Discount rate ("

+et Present /alue (MYR"

F"g*&e @ T/e g&a,/ #6 Ne% P&e)e$% Va+*e aga"$)% D")'#*$% Ra%e


13 5 P a g e


14/18

nte"nal -ate o# -et$"n --'4.6754050/

t (P30

P0/* NCF FPSO

4,000,000,000.00'

2,000,000,000.00'

0.00

2,000,000,000.00

4,000,000,000.00

6,000,000,000.00

8,000,000,000.00

C ):; P-):<

(C) a#te" ta C$*$lati+e (C) a#te" ta

Year

+et C#s %lo-(MYR"

F"g*&e 1@ Ne% Ca)/ F+#: #6 Pe'% 6#& FPSO

DiscountRates (et P"esental$e(P'

1/-6,16,226,9

17.76

5/-,789,684,0

46.49

10/-2,022,504,4

99.92

20/-451,106,109

.04

0/-60,077,878.

40'

40/-21,650,26

6.62'

1 5 P a g e


15/18

0.01 0.05 0.1 0.2 0. 0.4-1,000,000,000.00'

-0.00

-1,000,000,000.00

-2,000,000,000.00

-,000,000,000.00

-4,000,000,000.00

-5,000,000,000.00

-6,000,000,000.00

-7,000,000,000.00

T!e g"ap! o# (et P"esent al$e against isco$nt "ate

Discount Rate

+et Present /alue (MYR"



nte"nal -ate o# -et$"n --'28.06041/

t (P30

FIELD DEVELOPMENT ANALYSIS

T/e 9a)"' ea)*&e "$ %/e a$a+)") ") %# 6a9&"'a%e a Ne% Ca)/ F+#: D"ag&a 6#& %/e

+"6e%"e #6 %/e ,e'%. T/e a" #6 6a9&"'a%"$g %/e $e% 'a)/ 6+#: ") )# %/a% %/e )a"$g a$0 a++

%/e '#)%) '#*+0 9e ,*% "$%# a''#*$%. T/e S",+e Pa9a' Pe&"#0 ") %/e a#*$% #6 %"e %#

&e'#e& %/e 'a,"%a+ '#)% #6 %/e "$"%"a+ "$e)%e$%. T/") ") 0#$e 9 *%"+"


16/18

A''#&0"$g %# %/e F"e+0 0ee+#,e$% ,e'%) 6#& a++ 3 )'e$a&"#)8 %/e a+*e #6 IRR #6

ea'/ a$0 ee& )'e$a&"#) a&e $#% )ae a$0 *)*a++ %/e e'#$#"' &e)*+%) #6 a ,e'% a $#%

9e )%&a"g/%6#&:a&0+ ea)*&a9+e8 9*% a 9e a 6*$'%"#$ #6 a e ,a&ae%e& #6 %/e ,e'%

&e)*+%)8 :/#)e 0"&e'% ea)*&ee$% ") 9e#$0 %/e )'#,e #6 %/e ,e'%. Ba)e0 #$ #*& 6"e+0

0ee+#,e$% ,e'% a% #66)/#&e #6 Sa&a:a8 :e :e&e acquired %/e &e)*+% 9 'a&&"$g #*% %/e

'#,a&")"#$ #6 %/e a+*e #6 IRR 6#& ee& )"$g+e ,e'% ,+a$$"$g 6#& 9#%/ Pe'% a$0

C#$%&a'%#&..

Re)*+% @

F:; D:9m* C*0a/*0 P0/*#Cm9a-

S,a0; P9: 1.544173 34.277

R* FPSO 3.2!41 7.2523

D/' Ma7

F#& %/e %"e 6#& )e+e'%"$g a#$g *%*a++ e;'+*)"e ,e'%) #& 6ea%*&e) #6 %/e )ae

,e'%8 NPV8 IRR8 a$0 ,a9a' ,e&"#08 %/e )/#*+0 9e ea+*a%e0 6#& ea'/ #,%"#$ "$ #&0e& %#

a&&"e a% %/e 9e)% e'#$#"' a+%e&$a%"e. I6 %/e *%*a++ e;'+*)"e #,%"#$) /ae 0"66e&e$% +"6e

),a$)8 NPV ") %,"'a++ %/e 9e)% e%&"' 6#& '#,a&")#$ 9e'a*)e a++ )a"$g) a&e 9*g/% %# %/e

,&e)e$%. F %/e #*%'#e8 %/e O,%"#$ M1 F"e+0 De+#,e$% Pe'% ") %/e #)% ,"%a9+e

:a %# #,e&a%e %/e 6"e+0 #6 "$%e&e)%. T/a% )/#:) %/a% %/e '#,a$ ") &e'#e$0e0 %# *)e a$0

'#$)%&*'% %/e"& #:$ ,",e+"$e %/e #66)/#&e #6 Te&e$gga$*. Ba)e0 #$ %/e a))e))e$% 8 %/e O,%"#$

M1 0ee+#,e$% Pe'% g"e) %/e /"g/e)% ,e&'e$%age) #6 I$%e&$a+ &a%e #6 Re%*&$>IRR? a#$g

%/e 3 ,e'%) ,+a$$e0.

1. 5 P a g e


17/18

CONCLUSION

F#& %/e '#$'+*)"#$ #6 #*& a))e))e$% #6 %/e F"e+0 Dee+#,e$% Pe'% ,+a$$"$g 6#& %/e #"+

#,e&a%"#$ #6 %&a$),#&%a%"#$ e%/#0) %# %/e #$)/#&e8 :e /ae 0e'"0e0 a$0 ag&ee0 :"%/ %/e 6"&)% ,e'%

,+a$$"$g . O*& 6"&)% ,e'% )*gge)%e0 a9#*% %/e '#$)%&*'%"$g %/e"& e& #:$ #"+ ,",e+"$e %/a% '#$$e'%)

6 %/e #66)/#&e ,+a%6#& #,e&a%"#$ %# %/e %e&"$a+ :/"'/ #$"%e&0 9 %/e '#,a$ ,,e&%"e). A)

6#& %/e )e'#$0 ,e'%8 %/e #"+ ,",e+"$e ,e& 0a /a) %/e '#)% #6 %/e &e$%a+ a*$0 38 :/"'/ &e)*+%)

"$ #0e&a%e ,e&'e$%age #6 ,"% "$'#e. F#& %/e %/"&0 ,e'%8 %/e FPSO &e$%a+ 6#& #,e&a%"#$ ") a9#*%

3458 ,e& 0a 6#& %/e 0*&a%"#$ #6 15 ea&) a$0 "% :"++ '#)% a +#% a$0 ") ,e0 %/a% "% ") /a) %/e

"$"a+ ,e&'e$%age #6 ,"% "$'#e. T/e +#'a%"#$ #6 %/e ,+a%6#& ") 9e+"ee0 +#'a%e0 "$ %/e #66)/#&e

#6 Te&e$gga$* :"%/ %/e g"e$ +a%"%*0e) a$0 +#$g"%*0e). Te&"$a+ $ea&9 ") +#'a%e0 a% Keaa$ :/"'/

") $#:$ a) Keaa$ S*,,+ Ba)e. T/e 0")%a$'e 9e%:ee$ %/e ,+a%6#& a$0 %/e %e&"$a+ ") a9#*%

1!3.47 .

T/e$8 %/e e'#$#"' a))e)e$% ,a&ae%e&) "$#+e0 "$ %/") ,e'%) a&e 6*$'%"#$"$g a) %/e

'#$%+ a&"a9+e 6#& 0e'")"#$ a"$g 6#& '/##)"$g %/e &"g/% a$0 %/e #)% ,&e6e&a9+e e%/#0) %/a% :"++

ge$e&a%e a e& /"g/ "$'#e 6#& 9#%/ #6 %/e ,a&%"e) :/# a&e %/e '#$%&a'%#& a$0 '#,a$. T/e #)%

"%a+ ,a&ae%e&) a&e %/e Ne% 'a)/ 6+#: 0"ag&a8 B&eaee$8 Pa9a' ,e&"#08 Ne% P&e)e$% Va+*e >NPV?

a$0 a+)# %/e I$%e&$a+ Ra%e #6 Re%*&$ :/"'/ a&e $#:$ a) %/e %"e 6*$'%"#$ 6#& %/e a))*,%"#$ #6 %/e

6*%*&e ,"%a9+e "$'#e a$0 6*%/e&#&e 6#& "$e)%e$% ,+a$$"$g 6#& %/e ,e'% #,e&a%"#$ "$ 6*%*&e.

1+ 5 P a g e


18/18

REFERENCES

1. C#$'e,%) "$ E'#$#"' Ea+*a%"#$. >$.0.?. Re%&"ee0 a 138 128 6

/%%,@#':./),/.e0*"$0e;.'6g#"e:C#*&)e'#*&)eC#$'e,%)E'#$#"'Ea+*a%"#$

'#*&)ePage"$0e;

. #: %# Ca+'*+a%e #*& I$%e&$a+ Ra%e #6 Re%*&$ #$ I$e)%e$%). >$.0.?. Re%&"ee0 a

138 128 6

3. /%%,@#$e#e&55.a9#*%.'##0/#:%#"$e)%g"$%e&$a+&a%e#6&e%*&$./%

4. #: %# Ca+'*+a%e #*& I$%e&$a+ Ra%e #6 Re%*&$ #$ I$e)%e$%). >$.0.?. Re%&"ee0 a

138 128 6

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