KUALA LUMPUR: The employment of optimising techniques and technologies that are cost-efficient to safeguard profitability is crucial in the oil and gas sector, in particular with regard to the risk service contract (RSC).
The RSC is essentially a contract that significantly increases an operator’s risks of exposure, said ARC Media Global Pte Ltd in a statement yesterday, in conjunction with the Production Optimisation Week Asia in Kuala Lumpur from July 25-29.
In this case, the awardees or the consortium bears almost all the operating risks and is not paid in the event that the project or system fails, ARC Media Global explained.
The optimising of production becomes more pertinent with the RSC to develop the Berantai field as Petronas imposes strict key performance indicators on deliverability, production and costs, it pointed out.
Petronas awarded a RSC to a consortium comprising Kencana Petroleum Bhd, SapuraCrest Petroleum Bhd and foreign partner Petrofac.
ARC Media Global said with some 106 marginal oil fields containing 580 million barrels of oil, Malaysia is Southeast Asia’s second largest oil and gas producing nation.
“With Petronas’ recent major finds in particular and local service providers aspiring to acquire abilities in end-to-end solutions, Malaysia is poised to drive innovation and technology in upstream oil and gas production,” it said.
Even in this current climate of optimism in the sector, it is important to be relentless in arresting overall steep declines in production rates, besides rising rig costs, it added. — Bernama