NBO H4 Development Monthly Coordination Meeting October

NBO H4 Development

Monthly Coordination Meeting

October 2020 (Microsoft Team Meeting)

November 17th, 2020

1

AGENDA

❖Introduction / Safety Moment Video

❖Project Overview & Scope

❖Project Status Update

❖Project Contracting / Procurement

❖EPCI Water Injection Pipeline (UMD)

❖Onshore Fabrication / HUC (SFSB)

❖AOB

NBO H4 Development

Project Overview & Scope

4

NBO-4 well was drilled in 2Q-2017 to appraise the H4 discovery and

test upside targets

THE H4 RESERVOIR WAS FOUND OIL BEARING BY WELLS BOC-19/22 IN 2014

PM3 Northern Fields and H4 Reservoir▪ The H4 reservoir was found oil bearing in 2014

by the “near field” appraisal wells BOC-19 and

BOC-22 drilled from the BO-C platform

▪ Both wells were completed to oil producers in

2014 and have recovered approx. 4.9 mmstb (as

of Sept 2020)

▪ The NBO-4 appraisal well was drilled in Q2

2017 to appraise the H4 reservoir while testing

potential upside targets deeper horizons. NBO-4

has confirmed the H4 oil column. The upside

targets were found wet / uneconomic

▪ NBO-4 was successful in achieving the

objective to provide sufficient information to

continue the full development of H4

▪Early water injection required to protect

pressure depletion and maximize recovery

NBO H4 Development Project

5

5

Future development:

• 2 oil producers

• 4 water injectors

Well Spacing:

• 1.5 - 2.0 km

Depletion Mechanism:

• Water injection as secondary recovery

(pressure maintenance and sweep)

Base Case Volumetric:

• STOIIP: 46.6 MMSTB

• Incremental: 10.3 MMSTB (@ PSC

2027) and 17.6 MMSTB (@ field life

2050)

• EUR: 15.1 MMSTB (@ PSC 2027)

and 22.3 MMSTB (@ field life)

• Cumulative Production: 4.9 MMSTB

(as of Sept. 2020)

POWC 1998m TVDss

BO-B

BO-C

BO-D

NBO-4

NBO-4ST1 (EXISTING)

NBO-4ST2 (EXISTING)

0 2 km

N

BOC-22 – (EXISTING)

BOC-19 (NBO-3 - EXISTING)

LEGEND

Oil Producer

Water Injector

P&A well

Platform

Development Plan

(Post-Drill NBO-4)

TE (WI-ERD)

6B (OP-ERD)

3B (WI-ERD)

3C (OP)

RR (WI)

DD (WI)

NEW

NEW

NEW

NEW

NEW

NEW

EXISTING

EXISTING

EXISTING

NBO H4 Development Project NBO H4 Development Plan

6

NBO H4 development Project (2019-2021)

• 6 infill wells ( 4 Water Injectors, + 2 Oil Producers)

• New Flexible Water Injection pipeline from BOD to BOC

Platform.

• Brownfield works on BOD and BOC; BOC requiring

deck extension to accommodate 4 new slots

Existing Facilities

BOC Platform : Spare slots, requirement for Deck

extension for more slots.

BOC – BOD 6 km, 12” Oil Pipeline with available

ullage.

BOD Platform :

• Water Injection Facilities with spare ullage.

• Separation and processing facilities

BOA CPP

BOD WHRP

BOC WHRPBOB WHRP

12”, 5km

18”, 2km

Legend:

Oil Pipeline

Water Injection Pipeline

6”, 5km

NBO H4 Development Project Project Scope

7

TOPSIDES

MODIFICATION & HUC

DRILLING &

COMPLETIONS

UMD

Cost + Materials

SUBSEA

PIPELINE

SAPURA SCOPE

• Brownfield Works on BOD & BOC for the connection of the

new water pipeline.

• Deck Extension at BOC to accomodate 4 new Well Slots.

• Brownfield Works for the Hook Up & Commisioning of the

new Wells

+ +

TIME &

RESOURCES

CONTRACT

TIME & RESOURCES

CONTRACT

LUMP SUM

(MILESTONES)

DRILLING SCOPE

• 6 new infill Wells

4 Water Injectors

2 Oil producers

• PVD 3 drilling rig.

PIPELINE SCOPE• 6 km Water Injection Flexible Pipeline (6”)

• Transport water from BOA/BOD to BOC

• Lump Sum contract for the Supply & Installation of subsea

flexible pipeline and J Tubes & connections.

NBO H4 Development Project Project Scope

NBO H4 Development

Project Status Update

9

Target First Water: July 2020(Baseline)

First Oil: Mar 2022 (Forecast)

First Water: Dec 2021 (Forecast)

Target First Oil: Nov 2020(Baseline)Time Now

Sanction Award EPCI Rig Arrival

R2

WTGCUMMULATIVE

PLAN R0 PLAN R2 ACTUAL VAR R2Progress as of 26-Oct-20

TOPSIDE MODS-BOC/BOD/BOA 6.90% 97.60% 92.41% 92.54% 0.13%

BEC (DDE) 5.79% 100.00% 100.00% 100.00% 0.00%

SFSB (PROC/FAB/HUC) 78.15% 96.93% 90.29% 90.46% 0.17%

RML SUPPLIED ITEM 16.06% 100.00% 100.00% 100.00% 0.00%

SUBSEA EPCI 11.13% 100.00% 100.00% 99.87% -0.14%

WELLS / DRILLING 78.48% 70.95% 12.74% 12.74% 0.00%

OWNER 3.49% 72.36% 51.35% 51.35% 0.00%

Overall Progress 100.00% 75.97% 29.30% 29.29% -0.01%

* Based on Schedule Rev.2


Overview of Current Progress

10


Overall Project Schedule Rev 2*Based on drilling defers to Q4 2021 (WP&B 2021 Submission)

2018 2019 2020 2021 2022

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

PRCO

Petronas Milestone Reviews

Drilling & Completion Definition Studies

Brownfield Modifications

MR4 MR5WMRC

Hook-up & Commissioning

MR3MR2

FDP Preps.submission & Approval

Project Sanction

Conceptualization & Definition

Drilling Program WINJ wells

Flow Line tie-ins

Repsol Technical Review

Execute scope (Drilling)Contracting

PSUA

Procurement & Delivery of LLI

Vis. & Concept Select Studies

PRSU

Drilling Program OP

NBO H4 Development

PREP

WMRC Preparation

CA

Contracting of FEED studies

Opcom

FEED

1st Oil1st Water

Execute scope (Facilities)

MonsoonMonsoon

EPCI Contracting

MR1 Update

Detailed Engineering EPCI

First Water / First Oil

Detailed Engineering Brownfield

Transport & Installation of Flexi/Non-Metal

Procurement & Delivery of Flexi/Non-Metal

Milestones

PRD

Platform Ready for Rig move-in

Procurement of Delivery of Other LLI

Monsoon

TR3D

Brownfield Onshore Fabrication

11

Progress Highlights/Overview

PROJECT MANAGEMENT

▪ EPCI Lessons Learnt session held at Maya Hotel on 1-Oct-20 with attendance from MPM/ PCSB/

RML/ UMD. EPCI Completion Ceremony (Hi-Tea) was held at The Duchess Place in the afternoon

with all the top management present.

▪ EPCI Lessons Learnt draft issued by UMD for review. Final EPCI lessons learnt register issued on 9-

Oct-20 after incorporating comments.

▪ Letter notifying MPM (RDM) about deferment of rig move in October 2021 issued on 8-Oct-20 by

Technical Services Manager.

▪ Based on expected HUC completion by mid Nov 2020, RML to present the Close Out presentation

slides to MPM by end December 2020 and issue the Close Out Report by end Jan 2021.

▪ EEZ Submission Review and Notification to MKN packages issued to MPM via SharePoint as per

road-map requirements.

▪ Flowline tie-in scope is minor and does not warrant bidding of another new HUC Contract. As the

scope can be performed by TMM Contractor, PMT have proposed OCS Revision specific to HUC

Services for RML SCM further action – SCM has sent letter to MPM (Procurement Group) informing

on the latest contracting strategy.

▪ Received comments from Production Operation Manager on PRSU and PSUA - proposed to have

an internal fit-for-purposes sessions for these rather than a full blown review.

▪ Engaged MPM for Technical Concurrence of Covid-19 ABR (Additional Budget Request). 2 sessions

were conducted and Minutes of Meeting (MoM) was submitted to MPM on 26th Oct 20. Received

signed MoM on 28th Oct 20 which was given to Planning group.


12

Progress Highlights/Overview

PROJECT MANAGEMENT (Cont.)

▪ Blackstone Eng (BEC) submitted Org chart & CV of the proposed personnel for as-builting works.

The quotation seems to be on high side and BEC was asked to provide better manhours/cost for the

as-builting exercise. A negotiation meeting to be scheduled for BEC to provide the final quotation

accordingly.

▪ All offshore workers (Malaysian + Foreign) to perform rtPCR test for sign on/sign off based on new

Ministry Of Health (MOH) directive. For sign-off, workers will be quarantine until the result is

available. MOH agreed to waive the requirement for 14 days quarantine for sign-on after

engagement between MPM HSE/POM with MOH/MKN – Covid-19 rtPCR implemented for offshore

crew mob/demob.

▪ Sapura has been instructed to start compiling HUC Lesson Learnt and Final Documentation.

Similarly, Repsol personnel was asked to also provide the input for LL. Format for LL and sample has

been forwarded for references.

▪ Completed compilation of vendor data softcopy for RML supplied items (only hardcopy outstanding)

which will be incorporated into the final documentation.

▪ Oct. 2020 Monthly Coordination meeting is tentatively planned for 17-Nov-20 via Microsoft Teams


13

Progress Highlights/Overview (cont’d.)

EPCI WI PIPELINE

▪ EPCI Lessons Learnt session & Completion Ceremony held on 1-Oct-20 with attendance from

MPM/ PCSB/ RML/ UMD.

▪ EPCI Final Doc 95% completed. Reviewed draft of UMD project close out report and progressively

incorporated final comments from RML (As built schedule and schedule analysis)

▪ UMD is agreeable to the arrangement of deferred payment tax invoices submission by 1st./2nd. Dec

2020.

▪ UMD received RO from RML for Covid-19 cost.


14

Progress Highlights/Overview (cont’d.)

HUC / HTI

▪ Offshore HUC team completed all pipe supports installation on 13th Oct and also completed all the

mods (fit up & welding) for conductor guide/cone at cellar deck. Remaining works only to clear

punchlist for Structural, Piping and E&I.

▪ Surveyors for the vertical misalignment checks were mobilized offshore on 21-Oct-20. Completed

dimensional survey for Conductor guide/guard and new deck extension on 26th Oct 20. Finding

show misalignment were well within tolerance and survey team demob from offshore site on 28-

Oct-20.

▪ Completed HUC piping punchlist clearing (marking pipe spool, touch up paint, etc) on 26th Oct 20.

▪ Mobilized E&I personnel (3pax) on 28th Oct 20 for Instrument punchlist clearance. Expected to

complete all punchlist clearance by early/mid Nov 20.

▪ Sapura progressively retrieve and backload all equipment and material from offshore. Target for

demob of personnel on 4th. Nov as per planned except for E&I crews to complete the punchlist

(late mob due to new regulation by MOH). Expected full completion and demob by 11th Nov. 2020.

▪ Ongoing data population for ITR check sheet in Omega PCS.

▪ Ongoing handover piping material (Surplus & Flowline spools) from Sapura yard to RML

Marshalling yard in Kemaman supply base (KSB).


15

Budget Overview

▪ PCSB Approval of H4 Execution AFE on 6-Sep-19

▪ Received approval letter from MPM on 23-Sep-19 for Budget request conversion from "Contingent to

Firm"

▪ Received PVEP Approval Letter of the revised 2019 WP&B and 2020 WP&B on 25-Sep-19

▪ Received PVEP Approval Letter for FEED Supplemental and Execution AFEs (Facilities) on 26-Sep

▪ Received H4 drilling budget approval for 2020 WPB end Dec 2019.

▪ Drilling AFE - to be resubmitted

▪ Received Final Investment Approval (FIA) for H4 development project with a total of US$ 147.51 Mil

on 28-May-20.

▪ 2021 WP&B for Facilities & Drilling has been submitted to MPM.

▪ Drilling rig existing contract has been terminated and new competitive bidding is in-progress –

Tender Plan Plan approved and the Bid documents have been sent to bidders on 30th Oct

20. Bids closing date on 30 Nov 2020


16

EPCI Lessons Learnt session and Completion Ceremony held on 1-Oct-20 with attendance from

MPM/ PCSB/ RML/ UMD. ✓

Letter notifying MPM (RDM) about deferment of rig move in October 2021 issued on 8-Oct-20 by

Technical Services Manager. ✓

Received Technical Concurrence of Covid-19 cost by MPM line department. ✓

Flowline tie-in scope is minor and does not warrant bidding of another new HUC Contract. The scope

will be performed by TMM Contractor (Tanjong T7) ✓

EPCI Final Doc 95% completed ✓

Completed all the mods (fit up & welding) for conductor guide/cone at cellar deck. Completed

dimensional survey and HUC piping punchlist clearing (marking pipe spool, touch up paint, etc) on

26th Oct 20 ✓

Target for demob of personnel on 4th. Nov as per planned except for E&I crews to complete the

punchlist. Expected full completion and demob by 11th Nov. 2020. ✓

Project Value

➢ CAPEX @ Sanction 153.6 MUSD (Gross – including FEED) ✓

➢ FIA 147.51 MUSD (Execution) ✓

➢ First Oil Target Q4 2020, forecasted now to be Q1 2022 ✓

(based on latest 2021 WPB submission)

➢ PSC Fullfill Remaining PSC Commitment ✓


H4 Developments Update Summary

17

▪ Outstanding official resolution letter from PVN on PSC Minimum work commitment issue - Deliberation

on this matter is up to ministerial level in Vietnam. However, a jointly written letter has been issued by

MPM/PVN acknowledging H4 project is viable and implying work should proceed accordingly.

▪ Impact on deferment of Drilling on H4 project– ensure continuity of experienced team to perform the

complex ERD wells.

▪ Impact due to falling prices of oil worldwide - Deferment of drilling campaign to optimize Capex

▪ Availability of rig on time and within expected rates in 2021. Early start for competitive bidding of new

rig contract and to negotiate for rates in tandem with present market oil prices.

Areas of Concern


18

Areas of Concern

➢ Follow up with SCM on the info letter to MPM / Procurement Council on HUC Services flowline

installation will be performed by TMM Contractor (T7).

➢ Oct Monthly Coordination Meeting planned for 17th Nov. 2020 via Microsoft Teams.

➢ To complete remaining punchlist works by early Nov. before the monsoon season sneaks in.

➢ Completion of Final Documentation and Close-Out Report from UMD & Sapura

➢ Kick start the H4 Facilities Project Close out presentation and report

Next Step:


NBO H4 Development

Project Contracting/Procurement

20

Procurement StatusNBO H4 Development Project

RML PROCURED ITEMS

No. Packages Material Status ETA

1 DBB DELIVERED. Item closed. 16-Mar-20

2 SDSS Pipe DELIVERED. Item closed. 19-Jan-20

3 SDSS & HSCS Fitting Flanges DELIVERED. Item closed. 23-Dec-19

4 SDSS Clamp DELIVERED. Item closed. 28-Feb-20

5 Choke Valve DELIVERED. Item closed 9-July-20

6 SDV DELIVERED. Item closed. 13-May-20

7 PCSS DELIVERED. Item closed. 28-Feb-20

8 WHCM DELIVERED. Item closed. 11-Feb-20

SAPURA PROCURED ITEMS

1. Delivery Completed for all 56 packages.

21

Procurement Status (cont.)NBO H4 Development Project

DRILLING & COMPLETION CONTRACTS STATUS

Package Status QtyPackage Status as of

28/08/2020

Current

Contract

Expiry Date

Estimated

Contract Require

ment Date

Remark

TOTAL REQUIRED CONTRACT REQUIRED FOR H4 = 36

1

CONTRACT IN

PLACE /

EXISTING PA /

CONTRACT

EXTENSION

APPROVED

12

Tubular Handling 10.11.2021 20-Dec CONTRACT IN PLACE

Mud Logging 31.10.2022 21-Feb CONTRACT IN PLACE

Liner Hanger 13.10.2021 21-Feb CONTRACT IN PLACE

QA/QC Consultation 31.12.2021 21-Mar CONTRACT IN PLACE

Mud Consultancy Services 14.02.2022 21-Mar CONTRACT IN PLACE

OCTG 31.12.2021 20-Dec CONTRACT IN PLACE

Completion Equipment 30.05.2022 20-Dec CONTRACT IN PLACE

Base Oil 18.03.2023 21-Feb CONTRACT IN PLACE

Automotive Diesel Oil 20.03.2025 21-Feb CONTRACT IN PLACE

Casing & Cementing Accessories 31.12.2022 20-Dec CONTRACT IN PLACE

Cementing Equipment Services 18.06.2022 20-Dec CONTRACT IN PLACE

Tubing Conveyed Perforation (TCP) (Mini bid) 28.07.2021 21-Mar CONTRACT IN PLACE

2PREPARATION

OF PAPER8

EWL (New Tender - Comp. Bid) - 20-DecReceived PETRONAS' further comment on 24/08 and to respond by

26/08. ITB Preparation.

Debris Survey (New Tender - Comp. Bid) - 21-FebTP signed. Presented at TC3 25/08. To relook the technical eval

criteria, list of bidders and SOW. Issued screening 27/08.

Relief Well & Well Control Studies (Sole

Source) - 20-Dec

Pre-Qualification validation sent to bidders 25/08. Closing 27/08.

User to raise PR.

Jack-Up Drilling Rig (New Tender - Comp.

Bid))- 21-Mar

TP signed and submitted to PETRONAS. Submitted Draft ITB

Version 2 to George. Discussion on the rig TP ( 12/8) on the rigs

requirement. Pending technical comments from MPM Tech review.

PVN approved on TP 19/8.

Gyro (New Tender) - ITB - 21-FebTP routed for approval on 5/8. Paper all signed on 10/8 . TC3 on

18/8. Amended paper approved 25/08. To issue ITB

API Barite (New Tender - Comp Bid) - TP - 21-Jan ITB issued on 24/8. Closing 7/9.

Machine Shop (New Tender - Comp Bid or

Extension)- 21-Mar

Screening/market survey to postpone till end of August as we are

awaiting primary discount rate from OMS by 21/8 & also as contract

is expiring by 26/5/2021- no response from OMS as of 25/8/2020

22



3 IN PROGRESS 12

Managed Pressure Drilling (New

Tender - Comp Bid) - Pre-Q- 21-Jan

Technical review for screening result on going. To launch tender in

mid Sept.

Cased Hole Downhole Tractoring

(New Tender - Comp Bid) - TBE- 21-Jan

ITB issued to bidders on 10/7. Bid closing extended to 17/8. TBE on

going.

Hole Enlargement Tool (Mini Bid) -

RFP- 21-Mar

RFP issued on 15/7; closing 12/8. Technical review. Target to compete

Technical evaluation stage (5 weeks ) - 9/9)

Rig Positioning (New Tender - Comp.

Bid) - Screening- 21-Mar

Screening/market survey on 5/8. Closing on 13/8. Received response

from Vendor and 7 bidders replied to market survey including Vendor.

(To discuss on further action) To complete market survey analysis.

Drilling Fluid (Mini Bid Pan Mal) - TBE 21-FebITB issued on 17/07. Closing 10/08. Bid opened 11/08. Technical

evaluation ongoing. Target TER 29/09.

DD/MWD/LWD (Mini Bid) - ITB - 20-Dec

ITB issued on 17/07. Bid closing date extended to 24/08. Exceptions

forwarded to Legal on 04/08. Bid opened 25/08. Technical evaluation

ongoing. Target TER 14/10.

Wellhead and Christmas Tree (Sole

Source) - ITB- 20-Nov

ITB issued on 30/07, closing on 24/08. Bid opened 25/08. Evaluation

ongoing. Target TCEAR 24/09.

Drilling Rental Tools (New Tender -

Comp. Bid) - ITB- 20-Dec ITB issued on 10/08. Closing on 01/09.

Conductor Installation (New Tender -

Comp. Bid) - ITB- 20-Dec ITB issued 21/8. Closing 17/9.

Fishing Equipment & Service (New

Tender - Comp. Bid) – TBE- 20-Dec

Bid closed on 6 /7. Tech bids opened on 7/7. Tech evaluation ongoing (

45 days ). Target TER on 15/09.

Drill Bits (Mini bid) – RFP - 21-Feb RFP issued on 05/08. closing on 07/09.

Supply Vessels (AHTS & PSV) (Mini

Bid) – WRP- 21-Mar Technical requirement in preparation.

23



4

NOT YET STARTED

(Competitive Bidding/Single

Source/Farm in)

4

Permanent Downhole Gauge (PDG) -

for Service & Material (sole source

proprietary with Halliburton - service)

21-Feb To start TP in November 2020

Drilling Performance - PRONOVA (sole

source proprietary)- 21-Nov To prepare PR and launch tender – by Nov 2020

Marine Consultancy (New Tender - Comp.

Bid)- 21-Mar To prepare PR and launch tender – by Sept 2020

Seabed Assurance (New Tender - Comp.

Bid)- 21-Mar To prepare PR and launch tender – by Sept 2020

5CANCELED

(included in other contract)2

Liquid Mud Plan - -Included in Drilling Fluid Chemical, Equipment & Service contract

- Mini Bid

Class G Cement - -

To include the scope in Cementing Contract. Petronas Catman to

proceed with Change To Contract to include Class G Cement in

Cementing Contract.

24

NBO H4 Project Development PlanProject Photos – Project Completion Ceremony

NBO H4 DevelopmentA

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NBO H4 Project Development PlanProject Photos – Lesson Learnt in Session

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NBO H4 Project Development PlanProject Photos – Flexible Pipeline Offshore Campaign

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NBO H4 Project Development PlanProject Photos – Onshore –Consolidation of Flowline Tie-in spool for Handover

NBO H4 DevelopmentA

View of spool to be handover to T7 – well head tie-in spool secured into skid for storage

View of spool to be handover to T7 – well head tie-in spool stored at HUC marshalling yard

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NBO H4 Project Development PlanProject Photos – Onshore –Consolidation of Flowline Tie-in spool for Handover

NBO H4 DevelopmentA

Fabricated pipe rack for storage

36

Thank you

Documents

NBO H4 Development Monthly Coordination Meeting October