This paper describes how PETRONAS plays its role as Malaysia's Oil and Gas Regulator in maximizing values and extending the production period of Oil and Gas Assets in Malaysia. Upstream oil and gas industry in Malaysia is based on the Production Sharing Contracts arrangement. The Abandonment obligations transferred to the contractor on 2 items –
Obligations to execute the abandonment
Obligations to pay the cess fund
All this works is cost recoverable from PETRONAS. After more than 100 years since oil and gas development starts in Malaysia, there are nearly 40% of assets reaching its design life and this has increase the demand of decommissioning in Malaysia. More matured oil and gas regions have undertaken waves of decommissioning activities in recent years, it is only now that in Malaysia or South East Asia is facing emerging reality of decommissioning. Like any other challenges that the industry has faced before, this will require collaboration from Operators, Host Authority, Service Providers, and other relevant stakeholders to overcome the challenges that decommissioning wave brings.
PETRONAS as the host Authority in Malaysia is playing a key role in turning this challenges to an opportunity for others.
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