rom | Alternative Drilling Solution Cone 2012 if Se {©2012 PETROLIAM NASIONAL BERHAD (PETRONAS) ‘Aight eserves No pat ts dccumentmay b repredcad, sored a retrevalsytem or wenemitodn any form orby any mesns (elocrone, mectancal photosoping recorsng or eerie) witout te poisson ofthe copy owner Outline S33 Q Objective Q_ Current Outlook Q Alternative Drilling Options — Turnkey — _ Integrated Drilling Services (IDS) — Project Management Team (PMT) — Alliancing Q_ Conclusion and Recommendation 1o0f19Objective [DR L7’s To seek PDP ME€'s feedback and direction on Alternative Drilling Solution Options for PETRONAS Carigali. 20119 Background : Problems Faced by the Industry = ~*~*~-*~?X@CX*—_5“n + Lack of drilling expertise internally + High consultant and services day rates ( * Re-learning the learning curve * Continuity of personnel 30f19a : It is anticipated that approximately 309|COB wells _) planned to be drilled in the next 5 years, excluding ~ fast track/ad-hoc projects Pe 1) Sepat O11 Phase 1 2) AngsiEMP 1 5) Angsi EMP2 pM |) Abu A7/AB | 5) Bekok B inf 6) ResakFD ; 7), Dilan Rede Phase 1 1) BAJEHRevisit1 2) TKDP.A 3) Bokor Bini sk |) pa aT 5) Kumang FDP Update 6) Kanowit FDP Update eeeeeeecoaae : (4go0%T) 3094+ \ COB WELLS SB | 2) Sumandak NAG 4) KinabaluNAG Fast hr FOP — deld developmert plan Ways to Address the Resource Constrain ———_§_"§_ 9 3— + Individual external consultants — + Turn-key + Integrated Drilling Services + Project Management Consultancy (PMC) + AllianceAlternative Drilling Solution : PETRONAS Carigali Experience “Myanmar, Algeria & Mozambique : Different )® RSPOC & DRX (PMU Wells) Unbekistan & Iraq ‘SKO: Bokor, D18, D28 & D344 SBO: Samarang bor19 er eee © #1: Turnkey «> + who xs the ig? veseals, uate dts Cuall enginensig? | PAST PROJECTS 1. Usbelistan Risk Management - 2. rag (Weatherford) Contractor manages risks |_| Contractor may compromise on } svociaied withtig ‘well integrity in order to cut cost ‘mean ee ‘and maintain profitability. S logistics 7 PROM wedoceseen Facgee Cora THAT cost due to unexpected provides operators with a changesinscopedtvork | Ct F fixed well cost = Less operational flexibility “Access to Equipment and Resources ~ Contractor has the people, equipment regardless of market cyclesMarket Outlook : Turnkey 9g. ‘Transocean + Over 1800 offshore wells drilled and 500 completions worldwide, Owns driling rigs. + Able to provide total solution i.e Prospect Evaluation, Well Engineering, Operations Management. Baker Hughes + Currently managing and supporting rigs in 5 regions across the world. . However, does not directly ‘own a drilling rig. + Able to provide total solution i.e Prospect Evaluation, Well Engineering, Operations Management. Halliburton + Has ongoing experience in managing Turnkey projects. . However, does not directly own a drilling ‘ig, + Able to provide total solution i.e Prospect Evaluation, Well Engineering, Operations Management. _ aspect -Evaluction pnp Well rgirneeniy | — Wall Design “Opesotioas Manager 8 #2: Integrated Drilling Services (IDS) — concert | rast rrorects | The past of | 1. Myanmar GE ESEEROS varousserviees || > Algeria 5 Fewer Interfaces Tending better planning and more efficient drilling operations IfPMT ig not included, PCSB still requires own manpower to manage the contractor Comtsavings ~ asa result oF = shore eit dr “operations fe |May not get optimum solution} ? vba particlar rece 8 “Tecan to Revources = Contractor able to provide ualified PMT.Market Outlook : Integrated Drilling Services 1 Baker Hughes + Provides complete well construction which includes well engineering and driling operations. management. + Drilled 80 wells in 2011, utilizing 12 rigs. However, does not directly own a diling rig ‘Schlumberger + Provides complete well construction which includes well engineering and drilling operations. management + Drilled 426 wells in 2011, utilizing 36 drilling rigs ‘Scomi IDS Relatively new in the market and have not provided Integrated Drilling Services. + Does not have experience in managing complete well construction. Halliburton + Provides complete well construction which includes well engineering and drilling operations. management + As of December 2012, managing 96 diiling rigs around the globe. 10 Alternative Drilling #3: Project Management Consultancy (PMC) Relatively short contracting (Communication of period to award PMC confidential information contrac, hence diling [programs able to commence early Large international resource of experience and knowledge Provides Texibiity with resources ie easier to man-up ‘maredown DCSE engineers able to bald ‘capability by attachment to 1" PMCMarket Outlook : Project Management Consultancy ee CC. SPD Well Engineering + Provide dedicated team of technical experts to be involved directly in the planning and design. ‘Subsequently will manage service contractors and supervise drilling + Dedicated team is supported by international consultants worldwide. ‘Schlumberger * Able to provide dedicated team of technical experts to be involved directly inthe planning and‘ Kaesion >) However, would prefer to provide complete services ie IDS + PMC Boker x ‘Able to provide dedicated team of technical experts to be involved directly in the planning and éesion. However, would prefer fo provide compete services ie IDS + PMC Halliburton —_ + Ale o provide desicted team of technical experts tobe involved direct inthe planning and design. However, would prefer to provide complete services ie IDS + PMC ay, Alternative Drilling #4: Alliance TN concer PAST PROJECTS Strategic | | Schlumberger | Partnershipby | Bokor & PROS providingniche | Samarang _ technology | >. Baker - D18, D28 7 solutions | "Dt Tavences one = capability, technology foe 2 Risk & reward o approach I Tow risk of managing Tendency of te cORTRCIOF i} complex projects eg, HTHP, not wanting (0 focus on t has been incorporated in their | | | ‘Carbonate basement additional gains since gain | services. 13Conclusion and Recommendation CONCLUSION RECOMMENDATION c@_Tumkey, IDS and PMC is able to ca SCM toestablish MasterService |niegooted Dallixg address the current issue of “Agreement forTumkey-drilling Seqvicos Contact ‘manpower constrain in PCSB. services. SCM to establish Contract for Project Management ca PCSB will need to select different Consultancy services. options to match suitable project. “ Thank You sof 19