Marginal Field Economics: Investigating the Viability of Malaysian RSC Model

• Main Author: Muhammad Firdaus Abdul Razak, Muhammad Firdaus
• Format: Final Year Project
• Language: English
• Published: Universiti Teknologi Petronas 2011
• Subjects: TC Hydraulic engineering. Ocean engineering
• Online Access: http://utpedia.utp.edu.my/3362/1/DISSERTATION_11587.pdf; http://utpedia.utp.edu.my/3362/
• Institution: Universiti Teknologi Petronas

Development of marginal hydrocarbon fields is becoming the topic of interest among oil and gas industry players. In Malaysia, Risk Service Contract (RSC) is used for development of marginal fields. This paper will investigate the viability of Malaysian RSC implementation. The objectives of this research are to conduct comparative analyses between conventional PSC and RSC, between local RSC and foreign RSC; to evaluate current fiscal agreements for marginal fields; and to recommend methods to improve the economics of marginal fields to atrract investors. The scope of study of the project includes the implementation of PSC and RSC in Malaysia, economic modeling, and competencies of local companies. The methodology used for this project is conducting critical analysis on PSC and RSC implementation and also analyzing the local companies’ competencies to be marginal field operators. The finding of the project conclude that RSC implementation in Malaysia still needs further assessment and PETRONAS should reveal more on the RSC model to allow more in-depth and research to be conducted.