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Petronas to re-design Angsi Chemical Enhanced Oil Recovery project

Petronas considers onshore solution for Angsi CEOR

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolPetronas, the Malaysia national oil company (NOC) and the super major ExxonMobil are considering to re-design the Angsi Chemical Enhanced Oil Recovery project from the original CEOR vessel concept into an onshore treatment plant at Terengganu on the East Coast of Malaysia Peninsula.

Since 2012, Petronas and ExxonMobil are investigating solutions to maintain the plateau production and expand the lifespan of the Angsi oil and gas field in the South China Sea.

Located 160 kilometers offshore Terengganu on the East Coast of the peninsula, Angsi is a strategic field for Petronas since the first production in 2001.

In this Angsi oil and gas field the working interests are shared 50/50 between Petronas and ExxonMobil, with Petronas acting as the operator.

Petronas_ExxonMobil_Onshore_Angsi-CEOR_Project_FEED_mapIn Malaysia the recovery rate of the the crude oil from the in-place reserves is ranging between 30% and 40%.

Therefore Petronas is now targeting a 50% average recovery rate aligned with other companies.

Through the Angsi full field development project, Petronas and ExxonMobil are expecting to recover:

 – 1.4 trillion cubic feet (tcf) of natural gas

 – 160 million barrels of crude oil.

To boost the recovery rate, Petronas is willing to deploy the chemical enhanced oil recovery techniques to all the maturing fields such as Angsi.

This technology relies on a smart mixture of alkali-surfactants-polymers (ASP) diluted in soft water.

In this process, the alkali-surfactants-polymers mixture as well as the soft water require a sophisticated chemical and desalination treatment.

The performances of the CEOR depends directly from the quality of chemical mixture and water treatment process.

Because of the distance from shore, Petronas and ExxonMobil completed a front end engineering and design (FEED) work to operate this chemical and water treatment process offshore with a purposely converted CEOR vessel.

Petronas to award Angsi CEOR new FEED soon

MMC Oil & Gas Engineering and Water Standard completed this FEED work for the topsides in 2012.

At the end of this Angsi CEOR vessel FEED work the topsides required for the chemical and water treatment ended up at 7,000 tonnes instead of the originally estimated 4,000 tonnes.

This significant weight different impacted directly the size of the carrier to be converted into CEOR vessel, thus on its cost and the cost of the entire Angsi CEOR project.

With a 15 days storage capacity of the ASP additives and 150,000 barrels per day (b/d) of water injection the Angsi CEOR project jumped significantly above the first estimated $1 billion capital expenditure.

Petronas_ExxonMobil_Onshore_Angsi-CEOR_Project_FEEDEven though this Angsi CEOR vessel was due to run four years in Angsi before being transferred to the Shell and Petronas St Joseph oil and gas field offshore the Sarawak Province, the additional costs are compromising the value of the project.

In addition the Shell St Joseph CEOR vessel does not need the Angsi CEOR oversize.

As a first conclusion Shell decided to go on its own with a fit for purpose St Joseph CEOR vessel.

In this context, Petronas and ExxonMobil have decided to rethink the conceptual design of this Angsi CEOR project around onshore facilities to be located in Perengganu.

This onshore solution offers more flexibility to install the ASP additives preparation and water desalination units but it requires to transport the chemical mixture from Perengganu to the Angsi oil and gas field through a subsea 130 kilometers pipeline.

Anyway since the performance of the recovery rate is depending on the quality of the chemical and water mixture, this onshore solution rises some questions about the stability of this mixture after 130 kilometers pipelines transportation.

With such critical questions, Petronas and ExxonMobil are evaluating new FEED offers for this onshore Angsi CEOR project to be awarded on this second quarter 2014.

The FEED work on this Angsi full field development alternative solution should take six months, postponing the final investment decision (FID) for Petronas and ExxonMobil to the end of 2014 for first operations of the onshore Angsi CEOR project in 2016. 

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