INGENIEUR
PETRONAS for guidance in their operations , and the rules and regulations that incorporate ESG requirements .
‘ Net zero carbon emissions ’ means achieving an overall balance between carbon emissions produced and carbon emissions taken out of the atmosphere . It means no more carbon can be added to the atmosphere in any given year than is taken out .
The question is how can Malaysia ’ s O & G industry achieve net zero carbon emission by 2050 ? We attempt to answer the question by breaking down the overwhelming net zero goal to smaller sectors namely : - 1 . Legislative and Regulation Setting . 2 . Technology Adoption . 3 . Alternative Energy Source and Changing
Portfolio .
LEGISLATIVE AND REGULATION SETTING
PETRONAS has been and will continue to be the leader in managing the petroleum industry in Malaysia . As a regulator , PETRONAS released the PETRONAS Procedure Guidelines for Upstream Activities ( PPGUA ) which clearly specifies how each of the foreign and local operators and contractors in the oil and gas business conduct their operations . PPGUA is an important regulatory requirement to ensure safe operations which includes guidance on how all parties must consider the environment in their business decisions . PPGUA can be accessed by PETRONAS and PETRONAS Arrangement Contractors ( PACs ) or a special request can be made accordingly .
As an example of ESG-related requirements , PPGUA requires all development wells that are drilled and produced be plugged and abandoned according to the regulations to ensure that the environment can be restored to its pre-development condition as far as possible . This is to make sure there is no possibility of hydrocarbons leaking into the environment . Another example of PETRONAS as a regulator is monitoring how much flaring ( a process of burning the residue hydrocarbon for operation ’ s safety ) can be allowed into the atmosphere . All oil and gas operators must balance their production volume with their capacity to flare . PETRONAS has been the regulator since its establishment and partnership with other major operators , making it a respectable organisation globally .
On a national level , Malaysia aims to establish itself as a regional Carbon Capture and Storage ( CCS ) hub and plans to offer CO 2 storage in depleted offshore reservoirs for projects and clients outside the nation .
PETRONAS ’ Malaysia Petroleum Management ( MPM ) has identified upwards of an estimated 46 trillion ft 3 of potential carbon storage capacity across 16 of Malaysia ’ s depleted fields , which is more than sufficient for the nation ’ s forecast upstream CO 2 emissions .
Around 60 % of this storage capacity will be allocated to Malaysia for PETRONAS and its partners , while the remaining 40 % will be made available to other users , according to MPM senior vice president Mohamed Firouz Asnan ( Battersby , February 18 , 2022 ).
However , legislation needs to be drawn up for Malaysia to realise its lofty CCS ambitions . Some of the assets on offer in Malaysia Bid Round 2022 contained identified CCS sites , but these sites will remain as PETRONAS owned assets , and are not available for use by the companies awarded acreage .
As of now , there are no specific regulations governing the potential use of such CCS sites and each proposal , which could form part of a future field development plan , has to be negotiated on a case-by-case basis between PETRONAS and the operator involved .
“ From a regulatory point of view , CCS is considered as part of petroleum operations in upstream activities and will be regulated by PETRONAS . The existing guidelines are being enhanced to include additional scope for CCS ,” explained Jazlan Zulhaimi , manager of PETRONAS carbon management unit . ( Battersby , April 14 , 2022 )
PETRONAS is an endorser of the Zero Routine Flaring ( ZRF ) initiative , led by The World Bank . The ZRF initiative was launched in 2015 and commits Governments and oil companies to end routine flaring by no later than 2030 .
Gas flaring is a 160-year-old industry practice of wastefully burning , rather than using or conserving , associated gas , which is a by-product of oil production . The ZRF initiative is designed to facilitate co-operation between all stakeholders
34 VOL 91 JULY-SEPTEMBER 2022