JAKARTA – Malaysia has emerged as a leading example among progressive countries in effectively revitalising mature oil and gas (O&G) fields through innovative upstream policy reforms.
Brazil and Mexico also shared this achievement, according to Pri Agung Rakhmanto, founder and adviser of the ReforMiner Institute based in Jakarta, in his recent opinion piece.
His article titled Upstream Oil and Gas Policy Reforms: Learning from Brazil-Malaysia, emphasised Malaysia’s success in maintaining daily oil production above 500,000 barrels since 2000.
“Over the past two decades, the Malaysian government has consistently pursued innovative policy reforms aimed at fostering increased investment and hydrocarbon output,” he noted.
Pri Agung pointed out that since 2008, Malaysia had tailored its production sharing contracts to suit field characteristics, introducing specialised agreements for mature oil fields.
These encompass various contract types, including late-life and small field assets, shallow waters, and risk service contracts for less productive fields, offering advantages like tax exemptions and reduced tariffs.
The initiatives also encompass profit-sharing, as well as the elimination of supplementary payments and threshold volume obligations.
On a global scale, including Indonesia, Pri Agung stressed that oil and gas production heavily relies on mature fields that have surpassed their peak output phase.
“These mature fields contribute around 70% to the current global oil and gas production,” he stated.
Therefore, he noted that the process of field revitalisation to sustain and enhance production levels involves exploration and advanced oil recovery techniques, prompting investments with appealing return prospects. – Bernama, August 26, 2023
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