THE OIL AND GAS INDUSTRY

IN
SABAH
WHAT EVERY SABAHAN SHOULD KNOW –
AND
WHAT THEIR REPRESENTATIVES SHOULD
TELL THEM

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What is Oil Men?
“Oil Men credit themselves for
being tougher than the
toughest conditions in the
world ”

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 CONTENT
1 INTRODUCTION
3 OIL AND GAS INDUSTRY
4 MALAYSIA OIL AND GAS PROFILE
5 CURRENT PROJECTS IN SABAH
6 BUSINESS OPPORTUNITIES
7 SUMMARY

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INTRODUCTION
When talking about Oil and Gas industry, does the
following impression come across your mind?
Ø Petrol Station
Ø Offshore Platform
Ø PETRONAS Twin Tower
Ø Shell, ESSO etc
Well, the Oil and Gas industry is not just about petrol
station, PETRONAS and so on. Those are only part of the
units that make the whole jigsaw puzzle of Oil and Gas
industry.
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INTRODUCTION
What is Oil & Gas Industry?
Oil and Gas industry is made up of three (3) major components:-

UPSTREA MIDSTRE DOWNST

M AM REAM
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 UPSTREAM
DEFINITI
ON
Ø Upstream is a term used in oil and gas
industry which means the searching for and
the extraction and production of crude oil
and natural gas.
Ø The upstream is also known as the
exploration and production (E&P).

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UPSTREAM
OIL & GAS
FORMATION

Ø Tiny sea plants and animals

died and were buried on the
ocean floor.
Ø Over time, they were covered
by layers of silt and sand.

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UPSTREAM
OIL & GAS
FORMATION

Ø Over millions of years, the remains

were buried deeper and deeper.

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UPSTREAM
OIL & GAS
FORMATION

Ø The enormous heat and pressure

turned them into oil and gas.

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 UPSTREAM
EXPLORA
TION
OFFSHORE SEISMIC SURVEY LAND SEISMIC SURVEY

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 UPSTREAM
EXPLORA
TION NON-POROUS
ROCK
POROUS
ROCK

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 UPSTREAM
EXPLORA
TION

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 UPSTREAM
EXPLORA
TION

NON-POROUS ROCK

OFFSHO POROUS-ROCK
RE LAND
DRILLIN DRILLIN
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UPSTREAM

MUD
LOGGING

Ø MWD
(MEASUREMENT
WHILE DRILLING)
Ø LWD
(LOGGING WHILE
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DRILLING)
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UPSTREAM

The main purpose of

performing logging is
to confirm that the
porous rock contains
hydrocarbon i.e. oil &
natural gas.

HYDROCARB
ON (OIL &
NATURAL
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GAS)
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 UPSTREAM
PRODUC
TION

Platform
Hook-up &
Platform
Commissionin
Complex
g Satellite
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 UPSTREAM
PRODUC
TION

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 MIDSTREAM
DEFINITI
ON
Ø Midstream is a term used to describe the
processing, storage and transportation sectors
within the oil and gas industry.
Ø Midstream defines the industry processes that
occur between the upstream and downstream
sectors.

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MIDSTREAM

Crude Oil Terminal

FPSO

Offshore Pipeline

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DOWNSTREAM
DEFINITI
ON
Ø Downstream refer to the refining of crude oil,
and the selling and distribution of natural
gas and products derived from crude oil. Such
products include liquefied petroleum gas
(LPG), gasoline or petrol, jet fuel, diesel oil,
other fuel oils, asphalt and petroleum coke.

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DOWNSTREAM
REFINER
Y

Crude Oil
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DOWNSTREAM
RETAIL

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DOWNSTREAM
RETAIL

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DOWNSTREAM
PETROCH LUBRICANT
EMICAL S

COSMETI
CS
HYDROCAR
BON
PAINTS

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DOWNSTREAM
PETROCH PVC
EMICAL

SEALANT
S
HYDROCAR
BON
AND
MORE….

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 MALAYSIA OIL AND GAS
PROFILE
 
Energy Overview
Proven Oil Reserves (Jan 1, 2009E) 4 billion barrels
Oil Production (2008E) 727,000 bbl/d, of which 84% was crude oil
Oil Consumption (2008E) 547,000 bbl/d
Crude Oil Distillation Capacity (January 514, 832 bbl/d
1, 2009E)
Proven Natural Gas Reserves (January 83 trillion cubic feet
1, 2009E)
Natural Gas Production (2007E) 2.3 trillion cubic feet
Natural Gas Consumption (2007E) 1.2 trillion cubic feet
Total Energy Consumption (2006E) 2.56 quadrillion Btu, of which Natural Gas
(35%), Oil (41%), Coal (15%), Hydroelectricity
(2%)
Total Per Capita Energy Consumption 99.4 Million Btu per person
((Million Btu) (2006E)
Source: PetroMin Pipeliner, Jul-Sept 2010, Page 10

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 MALAYSIA OIL AND GAS
PROFILE
Oil and Gas Industry  

Organization Malaysia's state-owned Petroliam Nasional

Berhad (Petronas) dominates all aspects of the
country's oil and natural gas sector.
Major Oil / Gas Ports Kertih, Johor, Sepanggar Bay, Bintulu, Kuching,
Melaka, Penang, Port Dickson, Kelang, Kota
Kinabalu, Kemaman
Foreign Company Involvement BP, ConocoPhilips, ExxonMobil (Esso), Hess,
Mitsubishi, Murphy Oil, Newfield Exploration,
Nippon Oil, Shell, Talisman Energy
Major Oil Fields Bekok, Bokor, Erb West, Bunga Kekwa,
Guntong, Kepong, Kinabalu, Samarang, Seligi,
Semangkok, Tapis, Temana, Tiong
Major Natural Gas Fields Bedong, Bintang, Damar, Jerneh, Laho, Lawit,
Noring, Pilong, Resak, Telok, Tujoh
Major Refineries (capacity, bbl/d)(Jan 1, Shell: Port Dickson (125,000), Lutong (45,000);
2009) Petronas: Melaka I (92,832), Melaka II
(126,000), Kertih (40,000); EssoMalaysia: Port
Source: PetroMin Pipeliner, Jul-Sept 2010, Page 10
Dickson (86,000)
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 MALAYSIA OIL AND GAS
PROFILE
Top 5 Asia-Pacific Proven Oil Reserve Holders, January 2009

0 2 4 6 8 10 12
Trillion Cubic Feet
Source: PetroMin Pipeliner, Jul-Sept 2010, Page 11

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 MALAYSIA OIL AND GAS
PROFILE
Top World LNG Exporters, 2007

0 2 4 6 8 10 12
Trillion Cubic Feet

Source: PetroMin Pipeliner, Jul-Sept 2010, Page 11

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 CURRENT PROJECT IN
SABAH
SABAH-SARAWAK INTEGRATED OIL and GAS PROJECT
PETRONAS is developing the Sabah-Sarawak Integrated Oil and Gas
Project to harness the oil and gas resources in the offshore areas of
Sabah and Sarawak in East Malaysia.
Besides the development of the new oil and gas fields off the coast of
Sabah, namely Gumusut/Kakap, Kinabalu Deep and East, Kebabangan
and Malikai, the project consists of two onshore development:-
Ø Sabah Oil and Gas Terminal (SOGT)
Ø Sabah-Sarawak Gas Pipeline (SSGP)

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 CURRENT PROJECT IN
SABAH
SABAH OIL AND GAS
TERMINAL (SOGT)
Ø The SOGT will receive, store and export crude oil
as well as receive, process, compress and
transport the gas produced from the fields offshore
Sabah.
Ø Covering an area of about 250 acres, the SOGT
will have the capacity to handle up to 300,000
barrels of crude oil per day and 1.0 billion
standard cubic feet of gas per day.
Ø The crude oil and condensate received and stored
at the terminal will be loaded into vessels for
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single point moorings located about
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 CURRENT PROJECT IN
SABAH
SABAH-SARAWAK GAS
PIPELINE (SSGP)
● The 500km SSGP will transport gas from the SOGT in
Kimanis to Bintulu for processing into liquefied
natural gas (LNG) at the PETRONAS LNG Complex
for export.
● The pipeline system also has provisions for future
domestic consumption in Sabah and Sarawak.

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CURRENT PROJECT IN
SABAH
Sabah Oil and Gas
Terminal (SOGT) –
Under construction

Sabah-Sarawak
Gas Pipeline
(SSGP)-Under
construction

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 BUSINESS
OPPORTUNITIES
You can consider the following:-
a) To provide oil and gas related products
b) To provide oil and gas related services
c) To involve in the construction of oil and gas
facilities.
d) To invest into existing oil and gas company
e) To buy an oil and gas business
f) Retailing Business
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 BUSINESS
TOOPPORTUNITIES
PROVIDE OIL AND GAS
RELATED PRODUCTS
You can consider the
following:-
a) To supply machinery
b) To supply equipment
c) To supply hardware

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 BUSINESS
TOOPPORTUNITIES
PROVIDE OIL AND GAS
RELATED SERVICES
You can consider the
following:-
a) To provide
consultancy
b) To provide expertise

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 BUSINESS
TOOPPORTUNITIES
INVOLVE IN THE CONSTRUCTION
OF OIL AND GAS FACILITIES
If you are interested in
construction, then try to
consider to involve in the
construction of the
following:-
a) Oil and gas processing
plant
b) Fuel station
c) Onshore pipeline
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 BUSINESS
TO OPPORTUNITIES
INVEST INTO EXISTING OIL
AND GAS COMPANY
If you have a considerable
amount of capital, you can
consider the following:-
a) To become a shareholder
of an oil and gas company

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 BUSINESS
OPPORTUNITIES
TO BUY AN OIL AND
GAS BUSINESS
If you have a considerable
amount of capital you can
also consider the following:-
a) To buy an oil and gas
business

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 BUSINESS
OPPORTUNITIES
Have you ever realize the business opportunities behind a gas tank?

Busines
s
Opport
unities

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 RETAILING
BUSINESS o m pa ct
1. Fillin
g u pp l y of C
-up Gas 4. S ng s, C ap
s, Fitt i
V al ve
& H os es
2. Painting the Seals
Gas
Tank
5. Storage Facilities
n a nce (Stokis)
3. Ta n k M ain t e
& Repair, RQ 6. Tra
) nspor
(Requalification tation

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 SUMMARY
It is never to late to venture into oil and gas
industry. The industry is open to anyone who have
the following attributes: -
a) have the WILL to prepare to WIN
b) FAST and CONSISTENT
c) BUSINESS ACUMEN
In addition to the above attributes, you need to
acquire the following skills as well:
a) ACCOUNTANCY
b) SALES and MARKETING
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With the attributes
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and skills above, you are ready
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