BVF1214
OIL & GAS TRANSPORTATION SYSTEM &
SERVICES
Chapter 1: Introduction to Oil & Gas
Transportation System (Part A)
(Semester 2 2020/2021)
COURSE OUTCOME
By the end of the semester, student should be able to:
CO1
Explain the oil & gas transportation system services and apply the
codes & standards used in oil & gas industries
CO2
Able to perform the procedures involved in installation, fabrication,
testing & commissioning activities in oil & gas transportation system
CO3
Able to perform the correct procedure and work activities in oil &
gas activities according to codes and standard and safety regulation
SUBJECT SYLLABUS
WEEK
CONTENT
1
Chapter 1 Introduction to Oil & Gas Transportation System
2
Chapter 2 Overview of Malaysia Acts and Regulation on Petroleum & Gas Supply
3
Chapter 3: Off Shore to Onshore Transportation
4
Chapter 4: Oil & Gas Pipeline Construction
5
Chapter 5: Gas Distribution Station
6
Chapter 6: Permit To Work (PTW), Job Safety Analysis (JSA) & CIDB Green Card
7
Chapter 6: Permit To Work (PTW), Job Safety Analysis (JSA) & CIDB Green Card
8
Chapter 7: Flow in Pipeline
9
Chapter 8: Piping Materials
10
Chapter 9: HDPE Pipes Butt Welding (Butt Fusion)
11
Chapter 9: HDPE Pipes Butt Welding (Butt Fusion)
12
Project
13
Project
14
Industry Visit/ Talk
ASSESSMENT
Quiz
10 %
Project + Presentation
30 %
Technical Report
15 %
Assignment
15 %
Test
30 %
Total
100%
HISTORY
 Oil and gas production have been a mainstay of Malaysia’s growth since oil was first
drilled in 1910 in Miri, Sarawak.
 The first oil well (known as The Grand Old Lady) which was discovered by Shell,
started with a production of 83 barrels per day and reached a maximum of 15,000
bbls/d in 1929.
 Petroleum activities began increasing significantly in 1960s due to the discovery and
development of offshore fields in Borneo.
 In the early days, foreign oil companies dominated the oil and gas industry in
Malaysia with Shell and Esso being the two major players.
 This was followed by several other foreign companies such as Conoco, Mobil,
Aquitaine, Oceanic and Teiseki. The national company, Petronas came on to the scene
in 1974.
 In return for royalties and taxes, the foreign
companies were given petroleum concessions by
state governments, which accorded them exclusive
rights to explore and produce resources.
 However, exploration licences of these companies
ceased to have effect with the passing of the
Petroleum Development Act in Parliament in
1974, which granted Petronas ownership and
control of the nation’s petroleum resources.
Malaysia Oil & Gas Reservoir
 Malaysia’s continental shelf is made up of six major sedimentary basins,
geologically favourable conditions for the creation of hydrocarbons, which is
petroleum and natural gas.
 The six basins are grouped into three main regions:
 Peninsular Malaysia: Malay Basin in the offshore east covers more than
12,000 metres; and Penyu Basin in the south covers an area of 5,000
square kilometers.
 Sarawak: Sarawak Basin with seven geological provinces.
 Sabah: Sabah Basin, Northeast Sabah Basin and Southeast Sabah Basin, a
prolific deepwater discoveries.
THE VALUE CHAIN OF OIL & GAS SECTOR
Oil Pipelines
 Malaysian has limited oil pipeline network & relies on tankes and truskc to
distribute product onshore.
 Malaysia’s main oil pipelines connect oil fields offshore Peninsular Malaysia
to onshore storage and terminal facilities.
 Tapis pipeline: Tapis oil field to Kerteh plant in Terengganu
 Jerneh condensate pipeline to Kerteh plant in Terengganu
 Sabah offshore oil fields to onshore Labuan oil terminal (expanding to
Kebabangan cluster, Malikai, Gumusut/ Kakap & Kikeh oil fields)
 Sarawak offshore to onshore Bintulu oil terminal
 International oil-product pipeline runs from Dumai oil refinery in Indonesia
to Melaka oil refinery
 Interconnecting oil-products pipeline runs from Melaka refinery via Shell’s
Port Dickson refinery to Klang Valley airport & to Klang oil distribution
center
DIAGRAM OF NATURAL GAS INDUSTRY IN MALAYSIA
(PETRONAS Activity Outlook 2018-2020)
Map of Peninsular Gas Utilization (PGU)
 The PGU Project, which commenced
in the year 1984, comprising mainly
of gas transmission and supply
pipelines, as well as laterals has
grown over the years and now spans
over 2,500km, across Peninsular
Malaysia.
 The system also comprises of six
gas-processing plants with a
combined capacity of 2,000 million
standard cubic feet per day
(mmscfd), producing methane,
ethane, propane, butane and
condensate.
Gas Pipeline Infrastructure in Peninsular Gas Malaysia
Upstream Activity Outlook
Drilling Rigs and Hydraulic Workover Units (HWUs)
 A drilling rig refer to the machine used to drill a wellbore.
 The most widely used drilling rig types in Malaysia i.e. Jackup Rigs and
Tender Assisted Drilling Rigs (TADRs).
 Workover refers to any well intervention process which helps to repair the
wells using an invasive technique.
(PETRONAS Activity Outlook 2018-2020)
Offshore Fabrications
 Offshore Fabrication refers the construction of offshore structures
(e.g., Topsides, Jackets) and first steel-cut as the indicator for
commencement of construction activity.
(PETRONAS Activity Outlook 2018-2020)
Linepipes
 For the purpose of this
Report, Linepipe refers
to the supply of
Linepipes (Rigid) used
to transport oil or gas
between facilities
Offshore Installations
 Offshore Installation refers to
activities involving installation
of structures (i.e. WHPs and
CPPs) and pipelines; using
installation barges.
 Activities are measured in
terms of number of projects for
each type of barge. Number of
offshore days for each activity
may vary.
(PETRONAS Activity Outlook 2018-2020)
Hook-Up & Commissioning (HUC) and Maintenance, Construction & Modification
(MCM)
 Hook-Up & Commissioning (HUC) ties in all components of the facilities
including all functioning tests and start-up of facilities.
 Maintenance, Construction & Modification (MCM) covers activities related to the
repair and maintenance of existing topside facilities. Typically, an MCM campaign
will be executed every 5-8 years to ensure production sustainability.
 Both HUC and MCM are grouped together, as they generally have similar
manpower and equipment requirements. Given that both activities are labour
intensive, activity outlook is stated in man-hour units.
(PETRONAS Activity Outlook 2018-2020)
Floating Offshore Facilities (Floaters)
 Floating Offshore Facilities
(Floaters) refers to Floating
Production Storage and Offloading
(FPSO) and Floating Storage and
Offloading (FSO) units; non-fixed
structures involved in processing
and/or storage of hydrocarbons.
Marine Vessels
 Marine Vessels offer a wide range of
support services for Exploration and
Development drilling, installation, HUC
and Production.
 Anchor Handling Tug Supply (AHTS),
Platform Supply Vessels (PSV)/Straight
Supply Vessels (SSVs) and Fast Crew
Boats (FCB), as the most widely-used
vessel types.
(PETRONAS Activity Outlook 2018-2020)
(PETRONAS Activity Outlook 2018-2020)
(PETRONAS Activity Outlook 2018-2020)
Downstream
Malaysia
(PETRONAS Activity Outlook 2018-2020)
Downstream
Malaysia
Main Activities
(PETRONAS Activity Outlook 2018-2020)
Plant Turnaround
 Plant Turnaround is defined as a major engineering event during
which an onshore facility is shut down for equipment inspection
and overhaul, debottlenecking, revamps and catalyst
regeneration projects.
 Turnaround comprises of main mechanical work, which
constitutes the bulk of total activities (~60%).
 Turnaround is labour intensive, hence activity outlook is stated in
man-hours.
Did you know?
The average age of existing
plants are between 20-30
years. They continuously
undergo rejuvenation,
upgrading or modification
by taking opportunity of
downtime window during
Turnaround.
(PETRONAS Activity Outlook 2018-2020)