Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields

Since 1976, PETRONAS has gone through series of changes in its fiscal terms. As at 2012, PETRONAS has awarded three new Risk Service Contracts (RSC) for its marginal field development. In Malaysia, PETRONAS classifying marginal field as discovered reserve with recoverable less than 30 MMSTB and do n...

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Main Author:	Mohd. Saat, Muhammad Firdaus
Format:	Thesis
Language:	English
Published:	2013
Subjects:	QD Chemistry
Online Access:	http://eprints.utm.my/id/eprint/102237/1/MuhammadFirdausMohdSaatMSChE2013.pdf.pdf
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id	my-utm-ep.102237
record_format	uketd_dc
spelling	my-utm-ep.1022372023-08-13T06:11:13Z Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields 2013 Mohd. Saat, Muhammad Firdaus QD Chemistry Since 1976, PETRONAS has gone through series of changes in its fiscal terms. As at 2012, PETRONAS has awarded three new Risk Service Contracts (RSC) for its marginal field development. In Malaysia, PETRONAS classifying marginal field as discovered reserve with recoverable less than 30 MMSTB and do not yield attractive return under current technical and economical conditions. The main objective of this study is to perform an economic study between PETRONAS Small Field Risk Service Contract and the Production Sharing Contract (PSC) 1997 in developing the Malaysian marginal fields. The framework of the new Small Field RSC and the fiscal terms of the PSC 1997 were obtained from literature reviews. The cash flows models were developed by using three hypothetical marginal field data of Field A (30 MMSTB), Field B (30 MMSTB with 0.75 TSCF) and Field C (0.75 TSCF) as the input. The NPV, IRR and payback period of the contractor economics were compared. The sensitivity analysis was also performed on the factors that will affect the NPV and IRR. From the results, it was found that the Small Field RSC gives higher NPV for Fields B and C compared to PSC 1997. For Field C, the NPV is negative under the PSC 1997. The RSC gives higher IRR and shorter payback period than the PSC 1997 in all fields. From the sensitivity analysis, it was found that the RSC is insensitive against the oil and gas price volatilities, but sensitive to change in OPEX, CAPEX and production rates. In conclusions, the new PETRONAS Small Field Risk Service Contract (RSC) provides better economic conditions for the marginal field development due to better tax incentives and capital allowances. 2013 Thesis http://eprints.utm.my/id/eprint/102237/ http://eprints.utm.my/id/eprint/102237/1/MuhammadFirdausMohdSaatMSChE2013.pdf.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:147920 masters Universiti Teknologi Malaysia Faculty of Engineering - School of Chemical & Energy Engineering
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	QD Chemistry
spellingShingle	QD Chemistry Mohd. Saat, Muhammad Firdaus Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields
description	Since 1976, PETRONAS has gone through series of changes in its fiscal terms. As at 2012, PETRONAS has awarded three new Risk Service Contracts (RSC) for its marginal field development. In Malaysia, PETRONAS classifying marginal field as discovered reserve with recoverable less than 30 MMSTB and do not yield attractive return under current technical and economical conditions. The main objective of this study is to perform an economic study between PETRONAS Small Field Risk Service Contract and the Production Sharing Contract (PSC) 1997 in developing the Malaysian marginal fields. The framework of the new Small Field RSC and the fiscal terms of the PSC 1997 were obtained from literature reviews. The cash flows models were developed by using three hypothetical marginal field data of Field A (30 MMSTB), Field B (30 MMSTB with 0.75 TSCF) and Field C (0.75 TSCF) as the input. The NPV, IRR and payback period of the contractor economics were compared. The sensitivity analysis was also performed on the factors that will affect the NPV and IRR. From the results, it was found that the Small Field RSC gives higher NPV for Fields B and C compared to PSC 1997. For Field C, the NPV is negative under the PSC 1997. The RSC gives higher IRR and shorter payback period than the PSC 1997 in all fields. From the sensitivity analysis, it was found that the RSC is insensitive against the oil and gas price volatilities, but sensitive to change in OPEX, CAPEX and production rates. In conclusions, the new PETRONAS Small Field Risk Service Contract (RSC) provides better economic conditions for the marginal field development due to better tax incentives and capital allowances.
format	Thesis
qualification_level	Master's degree
author	Mohd. Saat, Muhammad Firdaus
author_facet	Mohd. Saat, Muhammad Firdaus
author_sort	Mohd. Saat, Muhammad Firdaus
title	Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields
title_short	Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields
title_full	Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields
title_fullStr	Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields
title_full_unstemmed	Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields
title_sort	economic comparirison study between risk service contract and production sharing contract in developing malaysian marginal fields
granting_institution	Universiti Teknologi Malaysia
granting_department	Faculty of Engineering - School of Chemical & Energy Engineering
publishDate	2013
url	http://eprints.utm.my/id/eprint/102237/1/MuhammadFirdausMohdSaatMSChE2013.pdf.pdf
_version_	1776100875957174272

Economic comparirison study between risk service contract and production sharing contract in developing Malaysian marginal fields

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