PETRONAS

ACTIVITY
OUTLOOK
2017-2019

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 1
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Cautionary Statement
PETRONAS makes no representation on the accuracy or completeness of any information provided in this
report and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part
of its contents.

Forward-looking statements in this report or in subsequent discussions with regards to this report involve
inherent risks and uncertainties. Should one or more of these or other uncertainties or risks materialise,
actual results may vary materially from those estimated, anticipated or projected. Specifically, but without
limitation, capital costs could increase, projects could be delayed, and anticipated improvements in capacity,
performance or profit levels might not be fully realised.

Although PETRONAS believes that the expectations of its management as reflected by such forward-looking
statements are reasonable based on information currently available to it, no assurances can be given that
such expectations will prove to have been correct.

Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, which
speak only as of the date they are made. PETRONAS undertakes no obligation to update or revise any of
them, whether as a result of new information, future developments or otherwise.

Images are for illustrative purposes only.

Release Date: March 2017

PETRONAS ACTIVITY
2 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
TABLE OF CONTENT
Foreword ....................................................................................................................................................... 4
Introduction.................................................................................................................................................... 5
Outlook Methodology.................................................................................................................................. 6

SECTION 1 - INDUSTRY OVERVIEW

Current State-of-the-Industry.....................................................................................................................7
Market Outlook............................................................................................................................................... 9
Strategic Direction....................................................................................................................................... 10
Portfolio Outlook..........................................................................................................................................11

SECTION 2 - CATEGORY-SPECIFIC OUTLOOK

Introduction.................................................................................................................................................. 14

A. Drilling Rigs
Category Overview......................................................................................................................... 16
3-year-Outlook.................................................................................................................................17
Medium-term Outlook (post-2019)............................................................................................ 18

B. New Development Projects

B1. Engineering Design & Consultancy and Offshore Fabrication
Category Overview.........................................................................................................................20
3-year-Outlook................................................................................................................................ 21

B2. Offshore Installation

Category Overview......................................................................................................................... 23
3-year-Outlook................................................................................................................................ 24

Medium-term Outlook (post-2019)............................................................................................ 25

C. Floating Offshore Facilities (Floaters)

Category Overview.........................................................................................................................26
3-year-Outlook................................................................................................................................28
Medium-term Outlook (post-2019)............................................................................................29

D. Hook-Up & Commissioning and Topside Major Maintenance (HUC and TMM)
D1. Hook-Up & Commissioning (HUC)
Category Overview......................................................................................................................... 31
3-year-Outlook................................................................................................................................ 32
Medium-term Outlook (post-2019)............................................................................................ 33

D2. Topside Major Maintenance (TMM)

Category Overview.........................................................................................................................34
3-year-Outlook................................................................................................................................ 35
Medium-term Outlook (post-2019)............................................................................................ 36

E. Marine Vessels
Category Overview......................................................................................................................... 37
3-year-Outlook................................................................................................................................38
Medium-term Outlook (post-2019)............................................................................................ 39

F. Plant Turnround
Category Overview.........................................................................................................................40
3-year-Outlook................................................................................................................................ 41
Medium-term Outlook (post-2019)............................................................................................42

Glossary........................................................................................................................................................43

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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
FOREWORD

Samsudin Miskon
Vice President
Group Procurement

Dear Business Partners,

PETRONAS is pleased to present the inaugural edition of the PETRONAS Activity

Outlook 2017-2019.

In this Report, we provide the general industry overview and a demand outlook for 8
prioritised categories - 7 in Upstream and 1 in Downstream. These are believed to be
good leading indicators for a broad range of activities and are able to provide a general
sense of direction, even to players in many adjacent categories.

We recognise that market information can be a strong industry enabler. As such, we

have designed and developed this Report with the intention of supporting you in
planning your resources and investments more effectively; particularly for project-
driven activities that are susceptible to demand spikes.

We believe that signaling the market would help to re-balance the supply-demand
dynamics, push for collaboration among players and encourage new players in
emerging categories. With this, we hope to build a more efficient and resilient
domestic oil and gas industry, and push for a more effective engagement between
PETRONAS and our vendors.

While we have put in our best effort to provide a good representation of the market
outlook and demand, we advise all industry players to use their own judgment in
making business decisions.

We are pleased to inform you that this Report will be released annually, to provide you
with timely and relevant information on PETRONAS requirements moving forward.

Lastly, in support of a true spirit of collaboration, we welcome your comments and

feedback towards the continuous improvement of this Report.

Thank you.

PETRONAS ACTIVITY
4 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
INTRODUCTION
The PETRONAS Activity Outlook 2017-2019 Report is produced to improve visibility on
future activities within the Oil & Gas industry in Malaysia, with the intention of assisting
Oil & Gas Services and Equipment (OGSE) vendors to execute better and more
effective planning of their resources and investments, particularly for project-driven
activities that are prone to demand spikes.

The mid-to long-term view of the Report promotes diversification, where vendors
would have better line of sight on emerging project requirements, and can spot
expansion and diversification activities.

This Report comprises two parts:

Section 1: Industry Overview
Section 2: Category-specific Outlook

Figure 1: PETRONAS Activity Outlook 2017-2019 Report Outline

Sections Description
1A
Current State-of-
Recap current oil price and market dynamics
the-Industry
1B
Industry Overview

Outline market expectation

Market Outlook Directional narrative on factors which may vary original
assumptions
1C
Outline PETRONAS focus areas, production outlook &
Strategic Direction
capital expenditure trends
1D
Provide high-level portfolio outlook & implication on
Portfolio Outlook
activities
2
Category
Outlook

Category-Specific Outlook for activities related to 8 prioritised categories

Outlook

PETRONAS ACTIVITY
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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
OUTLOOK METHODOLOGY
Scope of Coverage

For Upstream-related information, the Report covers the activity outlook for Malaysia.
This includes activities from PETRONAS Group of Companies and other Petroleum
Arrangement Contractors (PACs). Activities governed under the Malaysia-Thailand
Joint Development Area (MTJDA) are excluded from this Report.

For Downstream-related information, this Report covers the activity outlook for
PETRONAS Group of Companies in Malaysia only.

Time Horizon

The Report provides information on activities within a 3-year period, from 2017 to
2019. Information is accounted for when a specific activity begins, and not by contract
award. For example, for construction related activities, we report the date of first steel-
cut instead of the date of Engineering, Procurement, Construction, Installation and
Commissioning (EPCIC) contract award.

The Report includes activities which may have been contracted at the time of
reporting. Optimisation or sequencing efforts (e.g., impact of contracting strategy or
long-term activity sequence) are excluded from this Report. Additionally, multi-year
activities are not reflected. For example, an installation project from December 2017 to
January 2018 only accounted for once in 2017.

The Report also provides directional narratives for the medium-term (i.e., post-2019),
to support outlook analysis.

High & Low Case Scenarios

Outlook for most categories are provided via an upper and lower band based on:
Degree of project maturity e.g., higher certainty on projects under execution
vs. projects under study
Certainty of requirement e.g., higher certainty on vessels to support
production/operations vs. vessels to support new development projects

PETRONAS ACTIVITY
6 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
SECTION

1 INDUSTRY OVERVIEW

Current State-of-the-Industry

Changing global market conditions have resulted in lower, more volatile oil prices.
Before the oil price collapsed in 2014, prices were hovering above US$100 per barrel.
Since then, prices took a plunge, reaching a floor of US$26 per barrel in early 2016.

Modest recovery has been observed over the past 12 months. However, most industry
analysts do not expect a return to the days of US$100 per barrel oil in the near future.
The new normal seems to be closer to ~US$50-60 per barrel.

Figure 2: Dated Brent crude oil trend (US$/bbl)1

Apr 2015: Uptick in

2013: Shale boom China manufacturing
activity: drives higher
oil demand Nov 2016: Positive market
120 sentiments from OPEC &
non-OPEC announcement
to cut output
100

80 2014: South Sudan civil Oct 2015: Russia air

war, Crimea invasion, strikes on Syria

60 Yemen conflict, seizing

of Tripoli, ISIS wide-scale
offensive in Iraq
40

20 Mar 2015: Saudi

bombing in Yemen

0
Oct 14

Oct 16
Oct 13

Oct 15
Jan 14

Jan 16
Jan 13

Jan 15
Apr 14
Apr 13

Apr 15

Apr 16

Jan 17

Apr 17
Jul 14

Jul 16
Jul 13

Jul 15

Crude oil price per barrel

Until 27 February 2017

1
Source: Platts; Bloomberg

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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
In the Upstream sector, projects are becoming unprofitable, with many players facing
the brunt of the impact of low oil prices. Many Malaysian projects have been deferred
or cancelled altogether.

Upstream projects are also becoming increasingly complex and requiring higher
capital expenditure and technical expertise. Projects of this nature are not economic at
current prices.

Local Upstream players have seen share prices declined by ~67% on average since
June 2014, compared to their global peers which saw an average decline of ~40%

Figure 3: 2014-17 share price comparison between top Malaysian & global OGSE
companies2 (Index=100)

150

100

40%
50
67%

0
Jun14 Jan15 Jan16 Jan17

Global Average Malaysia Average

In the Downstream sector, players are actively investing (despite the volatility in refining
margins) to prepare for market improvements in the long term. For example, Sinopec
Corporation continues expanding its downstream business. Closer to home, Saudi
Aramco recently agreed to invest US$7 billion in PETRONAS RAPID project.

2
Based on top OGSE companies by market cap including global companies (e.g., Schlumberger, Halliburton,
Baker Hughes) and local companies (SapuraKencana, Bumi Armada, Yinson)

PETRONAS ACTIVITY
8 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Market Outlook

Based on industry analyst reports, oil prices are expected to average around US$50-
60/barrel. However, there are several factors which may cause this outlook to vary.

Figure 4 below outlines the key positive and negative growth drivers for market
outlook. However, it is important to note that the following drivers are non-exhaustive;
rather, they are used to illustrate factors which may be considered.

Sustained global oil demand

e.g., from major economies such as China
and India
Positive ~90% joint compliance by OPEC / non-
growth OPEC to lower output
drivers

Negative New sources of global supply

growth - e.g., agility of shale oil producers in the
drivers US
- e.g., Improved production from Iran,
Libya and Nigeria

High productivity-yielding technology,

which lowers cost of production

Figure 4

PETRONAS ACTIVITY
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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Strategic Direction

PETRONAS is steadfast in its direction and has a clear and robust strategy to weather
changes in the external environment. In the Upstream sector, PETRONAS will continue
to strive for sustainable value-driven production and operations.

In Downstream sector, PETRONAS emphasis is on protecting and growing margins

from commercial and operational excellence.

As a national oil company, PETRONAS continues to prioritise 3 strategic areas. These

are:

Maximise domestic value creation

- In Upstream, this means pursuing sustainable value-driven production and
maximising ultimate recovery through Brownfield developments
- In Downstream, this means achieving and sustaining world-class plant
performance and diversifying into higher value-adding revenue streams
(e.g., finding new markets for petrochemical products)

Leverage on technology-driven solutions to enhance efficiency and to unlock

value
- For example, PETRONAS is advancing work in CO2 gas management,
Enhanced Oil Recovery (EOR) & fluid technology solutions

Continued emphasis on capability building to develop the best-in-class talent

in the Oil & Gas industry

PETRONAS ACTIVITY
10 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Portfolio Outlook

Upstream activities remain a primary focus in domestic spend. However, higher

priority will be given to Downstream activities in the short-term.

Average 5-year domestic capital expenditure (CAPEX) for FY 2012-2016 was RM36
Billion per annum, with approximately 60% spent on Upstream activities.

For FY 2017-2021, average domestic capital expenditure is still expected to be invested

primarily in Upstream activities, albeit at a lower proportion, in line with lower crude
prices and an oversupplied crude market.

It should be noted that in FY 2017-2018, more emphasis will be on Downstream

activities, particularly for RAPID project.

Figure 5: Malaysia CAPEX spend FY2012-2016 (RM Billion)

50

41
39
36
35
32 12
31

28 20

21 23

25

11
6 6 8

4 3 3 4 4
0
2012 2013 2014 2015 2016 2012 - 16
Avg.

Historical Upstream Historical Average

Historical Downstream
Historical Corporate & Others

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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
For Upstream, an average of ~ 1.7Mboe/d production is forecasted over the next
five years.

Production volumes are set to fall slightly over the next 3-5 years to around 1.7
Mboe/d, down from a peak of 1.8 Mboe/d in 2016. New developments will drive
activities across many core OGSE categories and also lead to a spill-over effect across
others.

Figure 6: 2012-2021 Malaysia production (Mboe/d)

2.0

1.5
New developments will
drive activities across
many core OGSE
categories and also lead
1.0 to a spill-over effect
across others

0.5 Base load of activity

to maintain existing
operations

0.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Production from new developments Existing production

PETRONAS ACTIVITY
12 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
We have a steady stream of projects achieving first production in the next 3 years.

Upstream sector has a robust pipeline of projects focused on developing new growth
areas or Greenfield Projects and maximising ultimate recovery of existing fields or
Brownfield Projects.

Figure 7 below provides an illustration of the type of projects that is expected to

achieve first hydrocarbon over the next three years.

GREENFIELD PROJECTS BROWNFIELD PROJECTS

No previous construction/ Expansion/revamping of
Project type development of fields existing fields
& description Covers various activities
(e.g., infill drilling, rejuvenation,
injection facilities)

10-15 projects in 2017-2019 20-25 projects in 2017-2019

No. of (vs. >20 projects in 2014-2016) (vs. >25 projects in 2014-2016)
Projects

Sensitivity High degree of change, For most activities, low-to-

to Price depending on market conditions medium degree of change
Volatility However, EOR-related activities
are highly sensitive to market
conditions as they are less
economic during low oil price

Figure 7

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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
SECTION
CATEGORY-SPECIFIC
2 OUTLOOK

Introduction

Section 2 of this Report provides an activity outlook for prioritised categories. The
selection of these categories is underpinned by 4 guiding principles:

Core Oil & Gas activity: They represent fundamental activities in Oil & Gas
operations in Malaysia.

Nature of business: They require advanced planning due to high capital outlay and
long-lead times

Criticality of market conditions: They are mostly affected by market uncertainty

Benefits Malaysian OGSE players: Categories selected are mostly provided by

local vendors

Based on these guiding principles, 8 categories have been identified and selected.
These categories are leading indicators for activities in the Oil & Gas industry; comprise
of 7 Upstream categories and 1 Downstream category:
Drilling Rigs
Engineering Design & Consultancy (EDC)
Offshore Fabrication
Offshore Installation
Floating Offshore Facilities (Floaters)
Hook-up & Commissioning and Topside Major Maintenance (HUC and TMM)
Marine Vessels
Plant Turnaround

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14 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Figure 8 below shows the linkages between the Categories within Upstream sector,
whilst Plant Turnaround is on standalone basis for Downstream sector.

Upstream
Downstream
Exploration Developm ent Production

A F
Drilling Rigs
No. of Jackups Plant
No. of TADRs Turnaround
No. of
Combined due to interdependent activity under man-hours
New Development Projects
B D
Engineering Design and Offshore Installation HUC & TMM1
Offshore Fabrication No. of heavy lift No. of man-hours
No. of topsides & jackets campaigns
for CPPs & WHPs No. of floatover
campaigns E
No. of pipelay barge Marine Vessels
campaigns No. of AHTS
No. of PSVs/SSVs
No. of FCBs

C Floating Offshore Facilities Legend

No. of FPSOs
Name of Category
No. of FSOs
Unit of measure
No. of MOPUs
x Category deep-dives
Figure 8 Interdependent activity

Moving forward, activity outlook of other categories may be included in future releases
of the Report.

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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
A. Drilling Rigs

Category Overview

Drilling Rigs are used to drill exploration and development wells, and typically comprise
four (4) types:
Jackup Rigs
Tender Assisted Drilling Rigs (TADRs)
Semi-Submersible Rigs
Drilliships

To note, the type of rigs required is driven by water depth.

For the purpose of this Report, activity outlook will be provided for the most widely-
used drilling rig types in Malaysia i.e., Jackup Rigs and TADRs.

Figure 9 below provides a brief overview of its functions and specifications.

Used for both exploration and

development drilling
Jackup Most common type of offshore
Rigs Drilling Rig, used for a wide range
of environments & well-types
Operational in water depths of up
to 450 ft

Used for development drilling only

TADRs Normally used on platforms with
limited load capacity/space

Figure 9

PETRONAS ACTIVITY
16 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
3-year-Outlook

Over the next 3 years, the number of Jackup Rigs and TADRs are expected to remain
relatively stable, with an average of ~10 rigs per annum.

Figure 10: Number of Drilling Rigs (2017-2019)

Jackup Rigs Tender Assisted Drilling Rigs

# of Rigs # of Rigs
15 15

10
10 9 9 10
7
6 6
5 5 3
2 2

0 0
2017 2018 2019 2017 2018 2019

Low Case High Case

Activity for Jackup Rigs in the low case is supported by expected base load activity,
in order to fulfill exploration/commitment well obligations and to meet production
targets via new development wells.

The number of TADRs are expected to remain relatively constant over the next 3 years,
for the drilling of development wells activitiy. Based on this, no low case is provided.

Note: Outlook includes activities which may have been contracted out at the time of reporting

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 17
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Medium-term Outlook (post-2019)

Unless a significant uptick in future oil price occur, rig activity for both Jackup Rigs
and TADRs is expected to remain at a steady level in the medium-term, sufficient to
support PETRONAS drive for value-driven production.

Figure 11 below outlines growth drivers that could potentially vary medium-term
outlook

Drilling Rig activity is expected to revise

upwards if oil price is above current levels
for a sustained period of time (i.e., 3-5 years)
Further, activity is likely to increase on the
back of further exploration block awards
Positive (although it is important to note that this
growth would mainly impact the count for Jackup
drivers Rigs)

Negative
growth No downward activity pressure is
drivers expected given that rig count is already
at the minimun, it is therefore unlikely to
decrease much further

Figure 11

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18 OUTLOOK 2017
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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
B. New Development Projects

3 categories are grouped under this major area, given that its activity is mainly driven
by new development projects (Greenfield):

Engineering Design & Consultancy (EDC): Refers to the Detailed Design phase,
post-Conceptual Engineering and Front-End Engineering Design (FEED)

Offshore Fabrication: Refers to construction of offshore structures (e.g., Topsides,

Jackets)

Offshore Installation: Refers to installation of structures via heavylift or floatover

method and installation of linepipes at offshore locations

To note, HUC (part of EPCIC projects) is captured as a separate category to reflect both
Greenfield and Brownfield projects.

Several indicators are used to measure activity:

Engineering Design and Offshore Fabrication activities are reported together as the
indicators are similar, i.e.,:
- No. of WHP/ CPP Topsides and Jackets
- Total metric tonnes (MT) of WHP/ CPP Topsides and JTackets

Offshore Installation activity occurs post-fabrication, reported as:

- No. of installation campaigns

For the purpose of this Report, please refer to Subsection B1 for EDC and Offshore
Fabrication activity, and Subsection B2 for Offshore Installation activity.

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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
B1. EDC and Offshore Fabrication

Category Overview

While EDC and Offshore Fabrication are clustered together due to its similar indicators
for activity, both categories cover different types of work. The categories are the first
stage of EPCIC activities for offshore facilities.

The activities involve engineering, followed by construction (i.e., fabrication) of

offshore facilities
Engineering refers to Detailed Design which is preceded by Conceptual
Engineering, & FEED before EPCIC starts
Fabrication refers to first steel-cut as the commencement of construction activity

Figure 12 below provides a brief overview of Wellhead Platforms (WHPs) and Central
Processing Platforms (CPPs).

WHPs are used to produce oil/gas or

serve as an injector platform
WHPs also serve as a platform for
WHPs drilling activities
They can be linked to CPPs, Floating
Production, Storage and Offloading
(FPSO) unit or directly to onshore
processing facilities

CPPs process oil, gas, and water from

WHPs
CPPs house a Centralised Control
CPPs Room (CCR) for the entire field
complex, flare & utility systems,
compression modules and living
quarters

Figure 12

Engineering design and fabrication are sequential activities

Each new project will require engineering studies before fabrication
Therefore, demand for new WHP and CPP topsides and jackets serve as leading
indicators for both engineering and fabrication work

Activities are represented by new-build WHP and CPP fabrication requirements3

3
Our coverage excludes compression modules and other smaller structures (e.g., risers)

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20 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
3-year-Outlook

Figure 13 below provides the expected number of WHP Topsides and Jackets required
in the next 3 years, where offshore fabrication activity for WHP Topsides and Jackets is
expected to peak at ~15 000 MT in 2018

Figure 13: Number of WHP Topsides and Jackets (2017-2019)

WHP Topsides WHP Jackets

# of structures # of structures
10 10
10 1 10
3
High Case

5 9 5
7
2 2
1 1 1
1
0 0
2017 2018 2019
2017 2018 2019
Total metric
tonnes (MT) ~ 0.7 k ~ 6.8 k ~ 1.7 k ~ 0.5 k ~ 8.7 k ~ 1.8 k

# of structures # of structures

10 10
8 8
1
Low Case

5 5
7
6
1 1
0 0
0 0
2017 2018 2019 2017 2019
Total metric
tonnes (MT) ~ 0.7 k ~ 5.2 k - ~ 0.5 k ~ 8.7 k ~ 1.8 k

Legend: Medium (1k MT-<7.5k MT) Light (<1k MT)

Note:
1. Outlook includes activities which may have been contracted out at the time of reporting
2. Activities in the low case are derived by excluding projects with lower degree of maturity
3. Weight provided above excludes piles and conductors

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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Figure 14 below provides the expected number of CPP Topsides and Jackets required
in the next 3 years, where offshore fabrication activity for CPP Topsides and Jackets is
expected to peak at ~35 000 MT in 2018.

Figure 14: Number of CPP Topsides and Jackets (2017-2019)

CPP Topsides CPP Jackets

# of structures # of structures
2 2
2 2
1

1
1 1
1 1

2 1 2
1
0 0 1
0 0
2017 2018 2019
2017 2018 2019
Total metric Total metric
tonnes (MT) - ~ 21 k ~ 1.1 k tonnes (MT) -- ~ 14.5 k ~ 0.4 k

Legend: Heavy (7.5k MT-<15k MT) Medium (1k MT-<7.5k MT) Light (<1k MT)

Note:
1. Outlook includes activities which may have been contracted out at the time of reporting
2. No high / low case is depicted here, given that all projects have a similar degree of maturity
3. Weight provided above excludes piles and conductors

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22 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
B2. Offshore Installation

Category Overview

Offshore Installation activities involve the installation of Topsides, Jackets and

Linepipes using Installation barges.

Category outlook is provided for the 3 types of barges typically used for Offshore
Installation.

Figure 15 below provides a brief overview of widely-used installation barges Malaysian

and its functions.

Heavy lift barges utilise cranes and

Heavy lift are used for installing WHPs as well as
jackets and modular topsides for CPPs
barges

Floatover barges are used for

Floatover installation of heavier or integrated
barges topsides

Pipelay barges are specialised vessels

used for installing rigid pipelines
Pipelay It is to be noted that this Report
barges excludes replacement pipelines

Figure 15

Offshore Installation activity is measured in terms of number of campaign for each

type of barge.
For example, 1 project with 2 WHPs (i.e., 2 Topsides & 2 Jackets) would require 1
heavy lift campaign

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information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
3-year-Outlook

Figure 16: Number of heavy lift, floatover and pipelay campaigns (2017-2019)

Heavy lift Floatover Pipelay

campaigns campaigns campaigns

# of campaigns # of campaigns # of campaigns

15 15 15
Limited fabrication activity in Fabrication activity in Note: Outlook reflects
2017, resulting in fewer 2018 & 2019, affects pipelay activities driven
installations in 2018 installation post -2019 by new development
10 10 10 projects only

7 5
5 5 5 4
3
2 4 2
1
0 0
0 0 0
2017 2018 2019 2017 2018 2019 2017 2018 2019

High Case Low Case

Note:
1. Outlook includes activities which may have been contracted out at the time of reporting
2. Activities in the low case are derived by excluding projects with lower degree of maturity

PETRONAS ACTIVITY
24 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Medium-term Outlook (post-2019)

A steady flow of new projects is expected to sustain value-driven production targets.

Activities for categories within the new development projects area are expected to
remain stable, due to a flow of multiple new projects expected post-2019.

However, the scale of activities per project may be smaller than 2017-2019 (e.g.,
smaller WHP size), in line with the smaller scale of planned facilities

Figure 17 outlines growth drivers that could potentially vary medium-term outlook

Sustained oil prices (i.e., for 3-5 years) above

current levels will drive the following:
o Higher capital spending, which may
lead to an increase in the number of
sanctioned projects
Positive o Higher risk appetite, which may lead to
growth an increase in the number of complex
drivers projects

In the case of new development

Negative
projects, no downward activity pressure
growth
is expected: PETRONAS drive for
drivers
sustainable value-driven production will
be supported by a steady stream of new
projects

Figure 17

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 25
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
C. Floating Offshore Facilities (Floaters)

Category Overview

Floaters include non-fixed structures, involved in production and/or storage of

hydrocarbons. 3 types of floaters widely used in Malaysia are :
Floating Production, Storage & Offloading (FPSOs)
Floating Storage & Offloading (FSOs)
Mobile Offshore Production Units (MOPUs)4

Figure 18 outlines the overview of widely-used Floater types in Malaysia

Floating vessels used in the offshore

FPSOs Oil & Gas industry for the production
& processing of hydrocarbons, storage
and offloading (to a tanker)

Floating vessels used in the offshore

FSOs Oil & Gas industry for storage &
offloading (to a tanker)

Relocatable offshore units used for

early production system or enhanced
MOPUs oil recovery

Figure 18

Floater types are selected on a case-by-case basis, depending on operating field

conditions (e.g., marginal and short-lived fields with limited production, stranded fields
where infrastructure is lacking, projects requiring quick / early production).

Additionally, FPSOs and FSOs may be used in deepwater activities (when economic
thresholds are met).

4
MOPUs are considered floaters due to its ability to be towed to the oilfield without the use of barges

PETRONAS ACTIVITY
26 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
In Malaysia, vendors involved in the Floater categories mainly cover the following
services:
Supply of Floaters: Sold or leased (with an option to buy) to Petroleum Arrangement
Contractors (PACs). Floaters are fabricated via 3 main methods - conversions5,
retrofitting/refurbishment and newbuilds (i.e., purpose-built)
Operations & Maintenance (O&M) Services: Covers technical activities (e.g., systems
& equipment maintenance, crew competency and safety training, offshore oil
storage, offloading and shuttle tanker management)

This Report only focuses on the supply of Floaters, as it comprises the bulk of Floater
contracts (O&M services often contracted as an additional bolt-on6).

5
Conversions (typically converted from oil tankers for FPSOs/FSOs, & Jackup Rigs for MOPUs)
6
PACs usually outsource O&M services to a third party (e.g., EPOMs)

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 27
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
3-year-Outlook

Figure 19: Number of Floaters (2017-2019)

FPSOs FSOs MOPUs

# of FPSOs # of FSOs # of MOPUs
1 1 1 1
1 1 1

0 0 0
Storage 2017 2018 2019 Storage 2017 2018 2019 Metric 2017 2018 2019
capacity capacity tonnes
(bbls) - 500k 1,500k (bbls) - - 340k (bbls) - - ~21 k

Figure 19

Note:
1. Outlook includes activities which may have been contracted out at the time of reporting
2. No high / low case is depicted here, given that all projects have a similar degree of maturity.

7
Conversions (typically converted from oil tankers for FPSOs/FSOs, & jackup rigs for MOPUs)

PETRONAS ACTIVITY
28 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Medium-term Outlook (post-2019)

In view of current market conditions, limited growth prospects are expected for
Floater.

Figure 20 outlines growth drivers that could potentially vary medium-term outlook

Sustained oil prices (i.e., for 3-5 years) above

current levels will drive an increase in the
number of marginal/stranded projects. This
would indirectly increase the number of Floaters
required.
Regulatory changes (e.g.: more attractive PAC
Positive terms, tax incentives) that encourages more
growth marginal field or deepwater developments will
drivers increase demand for Floater.
Higher number of deepwater discoveries .

Negative
growth
drivers Change in operating philosophy e.g., high
usage of fixed platform for marginal field
developments instead of Floaters.

Figure 20

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 29
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
D. Hook-up & Commissioning and
Topside Major Maintenance (HUC and TMM)

Both HUC and TMM are grouped under the same category, as both generally have
similar manpower and equipment requirements.

Notwithstanding the above, HUC and TMM can be distinguished by the type of
activities it covers, as illustrated in Figure 21 below.

Interconnection, testing &

HUC commissioning of equipments
Bulk of activity comprises HUC
Activities activities on brownfield projects

Repair & maintenance work on

TMM existing facilities
Activities Bulk of activity comprises scheduled
maintenance work

Figure 21

Given that both HUC and TMM activities are labour intensive, activity outlook is stated
in man-hour units.

For the purposes of this Report, please refer to Subsection D1 for HUC activity and
Subsection D2 for TMM activity

PETRONAS ACTIVITY
30 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
D1. Hook-up & Commissioning

Category Overview

HUC covers activities involving the interconnection, inspection & testing and
commissioning of equipments/systems once they are positioned and installed. This
can be classified under 2 activity types:

Greenfield HUC: Involves works on newly installed platforms; e.g.,

- Physical interconnection between Jacket and Topside and between wellhead
and facilities .
- Testing and pre-commissioning
- Facility commissioning

Brownfield HUC: Involves works on existing offshore facilities & equipment

This Report will focus on a defined set of Greenfield & Brownfield HUC activity, as per
Figure 22 below.

Greenfield
HUC-related activities for newly installed WHPs & CPPs
HUC

Rejuvenation like-for-like restoration work on ageing platforms

to extend asset/facilities design life (e.g., 15-25 yrs)
General Topside Modification/Redevelopment e.g., platform deck
Brownfield extension, re-routing of piping, addition of new equipment ( minor
HUC & major) on topside facilities
Infill drilling addition of wells within existing production zones
to accelerate & optimise recovery. HUC-related activities here
includes preparatory work to receive rig interconnection between
rig and topside, pre-fabrication of pipe spool, structure) etc.

Figure 22

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 31
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
3-year Outlook

Figure 23: Number of HUC man-hours (Millions, in 2017-2019)

Total HUC man-hours

Man-hours (Millions)
6

4
4
3 3

3
2
2 2

0
2017 2018 2019

High Case Low Case

To note, activities in the low case take into account the following assumptions:
Greenfield HUC: Excludes platforms with lower probability of being fabricated.
Brownfield HUC: Assumes lesser man-hour requirements on the back of tighter
cost-cutting measures (i.e., lesser number of days required per campaign / activity,
fewer number of people hired / contracted).

Brownfield HUC activity makes up the bulk of total PETRONAS HUC activity
- Specifically, this is driven by HUC-related works associated with general topside
modification
Greenfield HUC activity mainly takes place in 2017
- This is driven by work associated with relatively high number of newly fabricated
platforms in 2015-16

Note: Outlook includes activities which may have been contracted out at the time of reporting

PETRONAS ACTIVITY
32 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Medium-term Outlook (post-2019)

HUC activity is projected to gradually increase in line with oil prices, where the bulk is
expected to be driven by development activity.
Brownfield activity should continue on current trajectory
Greenfield activity should rebound as new platfoms are installed

Figure 24 below outlines growth drivers that could potentially vary medium-term
outlook

Sustained oil price (i.e., for 3-5 years) above

current levels: Increased number of sanctioned
Positive projects as capital spending rises
growth
drivers

Reduction in new development projects, leads

Negative to decrease in Greenfield HUC activity
growth Ageing platforms not undergoing rejuvenation/
drivers redevelopment
Limited number of potential wells for infill
drilling

Figure 24

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 33
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
D2. Topside Major Maintenance (TMM)

Category Overview

TMM covers activities related to the repair and maintenance of existing topside
facilities.

TMM involves repair and maintenance work on existing topside facilities:

Unlike HUC, TMM activities focus on maintenance work

TMM contracts cover an accumulated set of activities that can be executed within a
single campaign:
Such accumulation of activities is driven by financial & operational efficiency
reasons

Typically, a TMM campaign will be executed every 5-8 years.

Generally, there are two types of TMM activities, as illustrated in Figure 25 below.

Scheduled maintenance involves activities that have been planned

prior to execution. This involves :
- Preventive maintenance ensure the general upkeep of the
Scheduled facility
Maintenance
- Pre-emptive maintenance help to work on targeted areas that
have been identified through predictive analysis (e.g., corrosion
rate analysis)

Corrective Corrective maintenance involves unscheduled works that

Maintenance arises due to unforeseen circumstances (e.g., leaked pipeline)

Figure 25

PETRONAS ACTIVITY
34 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
3-year-Outlook

Figure 26: Number of TMM man-hours (Millions, in 2017-2019)

Total TMM man-hours

Man-hours (Millions)
16
12 12
12
10

10 10
8 9

0
2017 2018 2019

High Case Low Case

TMM activity is sustained by the need to maintain asset uptime, to ensure

production levels can be maintained
Additional activity is expected to be driven by the increasing number of ageing
platforms
o ~30-40% of existing platforms are >25 years old, which necessitates frequent
TMM campaigns for upkeep purposes
TMM activities in the low case assumes a higher level of productivity and asset life
(e.g., lower number of scheduled TMM activities required)

Note: Outlook includes activities which may have been contracted out at the time of reporting

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 35
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Medium-term Outlook (post-2019)

TMM activities are projected to continue its steady increase, on the back of the
increasing average age of platforms

Notwithstanding the above, several factors will cause this outlook to revise upwards/
downwards:

Figure 27 outlines growth drivers that could potentially vary medium-term outlook

Increase in the number of new platforms, which

require more maintenance
Positive Enhanced Regulatory/Operational requirements
growth which requires higher level of maintenance
drivers activities.

Demand for TMM most likely will sustain

Negative despite the oil price uncertainty
growth However, higher TMM cost/budget constraint
drivers by operator may result in prioritisation of
some TMM activity and scope optimization/
reduction.

Figure 27

PETRONAS ACTIVITY
36 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
E. Marine Vessels

Category Overview

Marine Vessels offer a wide range of support services for exploration and development
drilling, installation, HUC & production operations. The following list of vessels is
covered within this category:
Anchor Handling Tug Supply (AHTS) vessels
Platform Supply Vessels (PSVs), Straight Supply Vessels (SSVs)
Fast Crew Boats (FCBs)
Standby Safety Vessels, General Purpose Vessels, Utility Vessels

AHTS, PSVs/SSVs and FCBs are the 3 most widely-used vessel types. Figure 28 below
provides a brief overview of its functions.

An offshore tug/supply ship equipped

AHTS with a high bollard pull and a stern
roller for anchor handling
Also used to transport supplies to and
from offshore platforms/ drilling rigs

Vessels that carry equipment &

PSVs, SSVs supplies to offshore sites

A high speed vessel for the

transportation of crew to offshore
FCBs facilities

Figure 28

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 37
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
3-year-Outlook

Figure 29: Number of vessels by type

AHTS > 100 MT AHTS =<100 MT

# of Vessels # of Vessels
100 100

50 50 ~35 ~30 ~35

~20 ~20 ~20

0 ~15 ~15 ~15 0 ~30 ~25 ~25

2017 2018 2019 2017 2018 2019

3 PSVs/SSVs FCBs

# of Vessels # of Vessels
100 100
~55 ~50 ~55
50 ~35 ~35 ~35 50
~45 ~40 ~45
0 ~25 ~25 ~25 0
2017 2018 2019 2017 2018 2019

Low Case High Case

Note:
1. Outlook includes activities which may have been contracted out at the time of reporting
2. Low case reflects the level of uncertainty in rig, installation and HUC activity.

PETRONAS ACTIVITY
38 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Medium-term Outlook (post-2019)

The number of Marine Vessels is expected to remain stable, in order to cater for
existing operations:
~50-70% of activity required to support existing facilities is expected to remain
constant
While the level of activity required to support new development projects may
increase, it is unlikely for it to recover to historical high levels

Figure 30 outlines growth drivers that could potentially vary medium-term outlook

Sustained oil price (i.e., for 3-5 years) above

current levels, will lead to more drilling activity,
Positive driving up the number of marine vessels
growth Change in operating philosophy e.g., lower
drivers helicopter utilisation

Further optimization of demand additional

Negative efficiency gains from integrated fleet
growth management efforts
drivers Change in operating philosophy e.g., more
unmanned platforms

Figure 30

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 39
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
F. Plant Turnaround

Category Overview

Plant Turnaround comprises major periodic maintenance of Downstream facilities. It is

defined as a major engineering event, during which a plant is shut down for equipment
overhaul and inspection. This covers the following activities:
Inspection and testing
Debottlenecking and revamping
Catalyst regeneration projects

Turnarounds are scheduled periodically and are important for the following reasons:
To ensure timely renewal of Certificate of Fitness (CF) by authorities
To maximise plant efficiency and capacity
To ensure that the plant and its equipment are reliable & safe to operate, in line with
health and safety industry best practices

Turnaround comprises the following types of activities:

Main mechanical work, which constitutes the bulk of total activities (~60%)
Other disciplines (e.g., electrical, instrument, inspection and rotating equipment
maintenance)

Turnaround activities are driven by Downstream businesses e.g.,

Petrochemical plants
Refineries
Gas processing plants
Liquefied Natural Gas (LNG) plants

To note, this Report refers to activities driven by PETRONAS Group of Companies only.

PETRONAS ACTIVITY
40 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
3-year-Outlook

Strong demand is expected for turnaround across Malaysia, with 12-17 total
turnarounds per year, as indicated in Figure 31 below.

Figure 31: Number of turnarounds and total man-hours (Millions)

Number of Total turnaround

turnarounds in Malaysia man-hours in Malaysia

# of turnarounds Man-hours (Million)

20 8

17 6.7
1 0.4
15 14 6
4
3 12 4.7
1
0.4
10
1
4 3.8
5
4
3
1.2 6.3

3 4.3
5 5 2
7 2.6
4
2
0 0
2017 2018 2019 2017 2018 2019

SB/SK >350,000 PM >350,000 SB/SK PM

SB/SK <=350,000 PM <=350,000
SB/SK <=100,000 PM <=100,000

Turnaround demand in Malaysia is expected to increase, where the majority of

turnarounds in Malaysia are above 100,000 man-hours, due to the relatively large size
of facilities.

Please note that RAPID is not included in the 3-year outlook, as its first turnaround is
expected to occur post-2019.

While turnaround schedules are compliant with industry regulations, there remains a
slight possibility of deferment/rescheduling7, depending on operational requirements.

Note: Outlook includes activities which may have been contracted out at the time of reporting

7
Any rescheduling or deferment of turnaround will most likely occur within a year, therefore minimal/no impact on
our model figures, which are calculated annually

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 41
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Medium-term Outlook (post-2019)

Post-2019, RAPID will cause a significant increase in turnaround activities, due to the
size of its operations. The RAPID project is scheduled to come online by 2019, and thus
will require turnaround work between 2020-2022.

To note, no factors are expected to contribute to either upward / downward

demand pressure. While turnaround activity levels may vary from year-to-year (due
to cyclicality), absolute levels are expected to remain constant, given that these are
mandated by regulations.

Inclusive of RAPID, turnaround activity is close to its upper bound.

PETRONAS ACTIVITY
42 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Glossary

PETRONAS is a fully integrated business. We maximise and add

value to Oil & Gas assets

Industry Terms used in this Report

Term Definition

Barrel A standard unit of measurement for oil production. One barrel contains 159
litres of oil.

Barrels of Oil A unit of measurement to quantify the amount of crude oil, condensates
Equivalent (boe) and natural gas. Natural gas volumes are converted to barrels on the basis of
energy content.

Brent Price The benchmark crude oil price in Europe, as traded on the International
Petroleum Exchange in London. Brent crude refers to a particular grade of
crude oil, which is slightly heavier than WTI crude. See WTI price.

CO2 Carbon dioxide, one of the primary greenhouse gases.

Deepwater We define deepwater projects as those in water depths exceeding 450 ft.
Unique methods are required to produce the oil and gas from the ocean bed
at such depths. See Floating Production Unit.

Development Drilling, construction and related activities following discovery that are
necessary to begin production and transportation of crude oil andnatural gas.

Downstream All segments of a value chain that add value to the crude oil and natural
gas produced, for example, oil refining, gas processing, gas liquefaction,
petrochemical manufacturing, marketing of petroleum and petrochemical
products, storage and transportation.

PETRONAS ACTIVITY
PETRONAS makes no representation on the accuracy or completeness of any OUTLOOK 2017 43
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
Glossary

Term Definition

Enhanced Oil Any method(s) applied to productive reservoirs in order to increase production
Recovery (EOR) rates and to improve the overall recovery factor.

Exploration The search for crude oil and/or natural gas by geological and topographical
studies, geophysical and seismic surveys, and drilling of wells.

Field A geographical area overlying a hydrocarbon reservoir.

Floating A converted or custom-built ship-like structure, with modular facilities to

Production, process oil and gas and for temporary storage of the oil prior to transfer to
Storage and carriers/tankers.
Offloading (FPSO)

Floating, Storage A converted or custom-built ship-like structure for temporary storage of the
and Offloading oil prior to transfer to tankers.
(FSO)

Mobile Offshore It is a self-installing and re-usable production jack-up

Production Unit
(MOPU)

Petrochemicals Organic and inorganic compounds and mixtures derived from petroleum,
used principally to manufacture chemicals, plastics and resins, synthetic fibres,
detergents, adhesives and synthetic motor oils.

Reserves Hydrocarbons which are anticipated to be recovered from known

accumulations of hydrocarbons.

Resources Resources are defined as the total estimated quantities of petroleum at a

specific date to be contained in, or that have been produced from known
accumulations of hydrocarbon.

Upstream The segment of value chain pertaining to finding, developing and producing
crude oil and natural gas. These include oil and gas exploration, development
and production operations; also known as Exploration & Production (E&P).

WTI Price Stands for West Texas Intermediate, the benchmark crude oil price in the US,
measured in USD per barrel, which refers to a type of high quality light crude
oil

PETRONAS ACTIVITY
44 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
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PETRONAS ACTIVITY
46 OUTLOOK 2017
PETRONAS makes no representation on the accuracy or completeness of any
information provided in this report and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.