Currently applying for a large project with the Malaysian government and looking for technical, research, and financial partnerships
Examples from several mature oil & gas basins have demonstrated that synergies between different fossil fuels can be exploited commercially. To date, little of this has been achieved in NW Borneo oilfields, partly as a result of unnecessarily complex license structure, partly given strict and non-negotiable timelines for production imposed by the legislative authority. As a consequence, the National oil Company as well as private capital O & G companies in Malaysia have been somewhat reluctant to explore synergies between fossil fuels, and between fossil fuel and oil production- related waste products. However, there will be two additional business drivers in the near future. These are (i) the presence of potentially cheap electric energy from the Bakun Dam; and (ii) the mandatory urge for both private industry and PETRONAS-Carigali to maintain economic oil production in rapidly declining fields. Studies indicate, that so-far an integrated concept for fossil and renewable energies has not been proposed. Given a more benign and flexible contract structure, the following four synergies could be achieved:
• C02 (from coal-fired plants, refineries, or Hi-C02 gas) could be re-injected into declining oil reservoirs for pressure maintenance and better oil recovery;
• Stripping-off C02 from Hi-C02 natural gas would allow these deposits to be commercialized - these are big and idle now;
• Reducing CO2 with the help of Sarawak coal and cheap electricity could lead to the the generation of synthetic fuels (middle distillates, high quality waxes);
• Sequestration of domestic and imported CO2 into decommissioned Sarawak Luconia gasfields, on a fee-per-unit base.
