MINUTES OF THE 81 st ASCOPE NATIONAL COMMITTEE MEETING 26 May 2016 Bandar Seri Begawan, Brunei

Transcription

1 MINUTES OF THE 81 st ASCOPE NATIONAL COMMITTEE MEETING 26 May 2016 Bandar Seri Begawan, Brunei 1. INTRODUCTION Mr. Hj Iskandar bin Hj Yahya, Acting Director of Upstream (Regulatory), Brunei National Petroleum Company Sendirian Berhad (PetroleumBRUNEI) and ASCOPE National Chairperson for Brunei welcomed the participants from all ASCOPE Member Countries. The Meeting was chaired by Mr. Hj Iskandar bin Hj Yahya, Acting Director of Upstream (Regulatory), Brunei National Petroleum Company Sendirian Berhad (PetroleumBRUNEI) and ASCOPE National Chairperson for Brunei and attended by Mr. Diep Sareiviseth, Deputy Director General of General Department of Petroleum, Ministry of Mines and Energy (MME) of Cambodia representing HE Cheap Sour, Mr. Ahmad Bambang, Marketing Director of PT Pertamina (Persero) of Indonesia, Mr. Thong Thammalat, Chief Cabinet of Lao State Fuel Company (LSFC) of Lao PDR representing Mr. Phayboun Phomphaphithak, Mr. Abd Rahim Mahmood, General Manager, Strategic Research, Corporate Strategy Division of PETRONAS of Malaysia, Mr. Myo Myint Oo, Managing Director, Myanma Oil & Gas Enterprise (MOGE) of Myanmar, Mr Candidio M Magsombol, Vice President for Downstream Operations, PNOC Exploration Corporation of the Philippines, Mr Sriram Narayanan, Vice President Projects & Development, SLNG of Singapore, Mr. Teerachai Pornsinsirirak, Vice President Energy Policy & Industry Relations representing Mrs. Sriwan Eamrungroj, Senior Executive Vice President for Corporate Strategy, PTT Public Company Limited (PTT) of Thailand, Mrs. Tran Vo Huong Giang, Deputy General Manager of International Cooperation Division representing Dr. Nguyen Quoc Thap, Vice President, Vietnam Oil and Gas Group (Petrovietnam) of Vietnam and Mr. Nopporn Chuchinda, ASCOPE Secretary In Charge. 2. PARTICIPANTS The list of delegates appears in Appendix A. 3. ADOPTION OF THE AGENDA The Meeting adopted the Agenda as appears in Appendix B. Page 1

2 4. REPORT OF THE ASCOPE SECRETARY In CHARGE Mr. Nopporn Chuchinda, ASCOPE Secretary In Charge (ASIC), reported the updates of ASCOPE s projects and activities including the accomplishments made for the period as appear in Appendix C. a) Organization update - ASIC presented the ASCOPE organization updates, highlighting the appointment of new Council Member for Philippines, Singapore and Vietnam and the new National Committee Chairperson for Philippines and Singapore. He also welcomed Singapore LNG Corporation Pte Ltd as a new representative of Singapore to ASCOPE. b) Term of BDC Chairmanship - ASIC summarized the term of BDC Chairmanship for all BDCs as Appears in Appendix D. c) ADG books - A total of 36 copies of ASCOPE Decommissioning Guideline (ADG) were handover to PTT since January The digital version of ADG book has been published for sale online in ASCOPE website. As of May 2016, 15 hard copies remained, 3 digital copies and 6 hard copies were sold and one complimentary given to Department of Mineral Fuels of Thailand. d) New ASCOPE Website - The ASCOPE website has been equipped with a dashboard function for ASCOPE Members. This includes BDC forums, document platform and KPI report functions. - Username and password has been distributed to all Council Members, National Committee Chairpersons, BDC Members and Country Coordinators. e) Highlight of ASCOPE Accomplishments and Initiatives - Completion of Health, Safety, Security and Environment Management System Guidelines for ASEAN in Completion of ASCOPE Decommissioning Guideline Book The ASCOPE ADG has been adopted by Brunei and formally incorporated with existing Brunei Safety, Health & Environment Legislation. - Commenced study on ASCOPE Unitization Framework (AUF). Page 2

3 - Completion on ASEAN LNG Sales & Purchase Agreement (SPA) to support TAGP and AGCC. f) Financial report - ASIC informed the Meeting that as of April 30, 2016, there is US$ 633, cash maintained at the CIMB Labuan, Malaysia and Krung Thai Bangkok accounts. Net Income posted at US $10, for the period under review (April 30, 2015 April 30, 2016). g) Future hosting of ASCOPE Meeting and Conference & Exhibition - ASIC informed the Meeting that the next ASCOPE Council Meeting will be hosted by Ministry of Mines & Energy (MME) from 6 9 September 2016 in Siem Reap, Cambodia. - ASIC further proposed to the Meeting to consider the suspension of ASCOPE Conference & Exhibition in view of the current market condition. Members agreed with the suspension and ASIC will present this in the upcoming ASCOPE Council Meeting in Siem Reap, Cambodia for endorsement. h) ASCOPE Petroleum Statistics Taskforce Due to the sensitivity of the data, the request to put up an ASEAN Petroleum Statistics Working Group is deferred. The Meeting requested ASIC to work closely with BDCs to utilize the existing database in the ASCOPE website. 5. CONSIDERATION & APPROVAL ON THE UPDATE/STATUS REPORT FROM BDC/WC/TF PROGRAM OF WORKS 5.1 Update/Status Report from BDC/WC/TF Program of Works Exploration & Production Business Development Committee (E&P BDC) Mr. Jaime A. Bacud, Chairperson of the E&P BDC, briefed the Meeting on the updates of the E&P BDC work program and accomplishment as appears in Appendix E. The following areas were highlighted: ASCOPE Unitization Framework (AUF). The latest draft of the AUF will be provided to all Member Countries for comments and inputs by end of June 2016 and final draft to be ready by end of July Final editing and proof reading to be done internally considering unavailability of PETRAD. Page 3

4 ASCOPE Decommissioning Guidelines (ADG) The E&P BDC is considering commencing the update of the ADG after the completion of the AUF. ASIC suggested that there are outstanding issues in ADG, particularly some missing references of the book. ASIC team will seek input from E&P and other members. The Meeting suggested to add commentary box for buyers of the ADG book in ASCOPE website. ASIC encouraged Member Countries to promote the ADG in order to boost its sale. PetroleumBRUNEI reported its adoption of the ADG in its Decommissioning and Restoration Guidelines and Technical Handbooks. PetroleumBRUNEI will share to ASCOPE Member Countries once the Guidelines is ready. Due to unavailability of funds, the Deepwater Workshop in collaboration with PETRAD did not take place. The Meeting noted that E&P BDC may have to pursue this Workshop through ASCOPE. The Meeting request the E&P BDC to submit a proposal should it require funds more than USD5, budget allotted for each BDC. Pertamina and PTT indicated their support of the Workplans of the E&P BDC particularly on the following: (1) Best Practices on Cost Reduction and Maximizing Productivity among ASCOPE Member Countries; (2) Potential Business Opportunities and (3) Lessons Learnt from Tripartite Projects Trans-ASEAN Gas Pipeline Task Force (TAGP TF) Mr. Faizal B Mydin Pitchay, the Lead Coordinator of the TAGP TF briefed the Meeting on the highlights of the TAGP TF Meeting as appears in Appendix F. The following areas were highlighted: TAGP updates initiatives as follows: i. Gas Quality initiative is 40% completed. Member Countries will provide the additional information requested by end June ii. Collaboration with T&M initiative is 20% completed. Early discussion on collaboration possibilities is ongoing iii. Gas Infrastructure Database initiative is 80% completed. Available information is consolidated and uploaded to ASCOPE website. Member Countries will provide additional information by end June iv. RGT Sharing Platform initiative is 80% completed. RGT Sharing Forum was conducted at Map Ta Phut Terminal, Rayong, Thailand on 4 th Page 4

5 March 2016 and participated by 5 Member Countries to share their experience and aspirations. Moving forward, TAGP will organize subsequent sharing session at different RGT location and promote utilization of ASCOPE website by creating discussion forum regarding RGT s technical and operations, lesson learnt and best practices. All 3 initiatives under Strategy 1 of APAEC TAGP Work plan (Outcome Based Statements) are progressing as planned. The Meeting suggested TAGP to look into and explore more opportunities in LNG hub in the region ASEAN Gas Consultative Council (AGCC) Ms. Ria Noveria, Chairperson of AGCC presented the highlights of the 17 th AGCC Meeting as appears in Appendix G. The following areas were highlighted: ASEAN LNG SPA model is ready to be uploaded in ASCOPE website as a reference material, non-legally binding, and evolving document. This is subjected to approval / endorsement from National Committee Chairpersons to be uploaded to ASCOPE website. ASIC emphasized that preparation of an appropriate instrument for ASEAN LNG cooperation based on the principles of ASEAN LNG SPA (long term) is very important towards LNG SPA success. The Cross Border Taxation and Tariff issues are still ongoing and need more time for some Member Countries to complete the information. Both the Gas in Transit Principles and The Jurisdiction of Instalment Pipeline in International Waters have been dropped by AGCC and could be addressed through bilateral or contractual means. AGCC Chairmanship will be handed over from Pertamina to SLNG Processing and Refining BDC (P&R BDC) Mr. Abidin Musa, Chairperson of the P&R BDC, updated the Meeting on the updates of the Processing and Refinery activities, Key Performance Indicator and proposed work plan as appears in Appendix H. The following areas were highlighted: Sales of used catalyst was explored, however this cannot be materialized due to incompatibility to other refineries. P&R BDC agreed to redefine the terms and scope of coverage for Exchange of best practices from revamp / expansion of refinery. This will further discussed during upcoming BDC meeting planned in Vietnam in August 2016 (tentatively the 2nd week of August). Page 5

6 Optimization of heat exchanger cleaning and modelling was discussed and it is a work in progress. The team agreed to redefine the scope and focus only on Refinery Performance Benchmarking. A Site Visit to Brunei Methanol Company plant was conducted on 24th May Trading and Marketing BDC (T&M BDC) Ms. Eleanor Cruz, Chairperson of the T&M BDC, updated the Meeting on the The 29 th Trading & Marketing (T&M) Business Development Committee (BDC) MEETING as appears in Appendix I. The highlights include: Sharing of Total Crude and Products traded amongst ASCOPE Member countries from Q to Q i. For Full Year 2015 and Q Total crude and products traded is approximately 149 million barrels ii. The Meeting suggested to upload data such as surplus and deficit into ASCOPE website so that it could be utilized to identify business opportunities. Initiatives of creating new task forces i. Members have agreed to study the possibility of creating taskforce for - Petrochemical Trading - Retail Business Commercial Traders Forum PNOC will host the 2 nd Commercial Traders Forum scheduled in August 2016 in Manila Technology and Services Committee (TSC) Dr Shahidah Mohd Shariff, Technical Services Committee (TSC) Chairman presented the updates as appears in Appendix J. The following area were highlighted TSC EWG Achievements and Updates a. Technology Scanning & Evaluations i. All KPI are completed. New KPI is set. ii. TSE EWG to re-establish the criteria and priorities in the TSE Technology Value Matrix and revert to the group iii. ProAssure application is successfully deployed in Maleo Field, Indonesia. b. New & Renewable Energy Source is removed due to lack of interest from Member Countries. c. Database Management Page 6

7 i. Database Management is currently uploading data into ASCOPE website. d. Capability Management i. The Mercury Removal Management System training program was conducted in PETRONAS Research Centre (PRSB) on 11th September ii. PNOC (NRES program) and PTT (Leadership program) for 2016 has been cancelled due to lack of participation. iii. The Meeting suggested to utilize existing technologies from Member Countries to develop regional s own technologies instead of buying from non-asean countries. 2. Redefinition of TSC TSC proposed to change its name to Technology, Services and Capability Committee. Member Countries also agreed to the formation of three EWGS namely: Technology, Scanning and Evaluation (TSE) EWG, Technical Services (TS) EWG and Technology Capability Building (TCB) EWG. The Meeting agreed with the propose change of name to Technology, Services and Capability Health, Safety, Security and Environment (HSSE) Committee Mr. Adiphol Tannirandon, on behalf of Mr. Sirasak Chandrema, Chairperson of HSSE Committee, presented the highlights of the 5th HSSE Committee Meeting as appears in Appendix K. The following areas were highlighted: The meeting agreed to develop 3 new guidelines and 1 checklist, championed by respective Member Countries as follows. 1) HSSE Corporate Risk Management Guideline (PetroleumBRUNEI) 2) Process Safety Management Guideline (PTT) 3) Contractor and Supplier Management Guideline (Pertamina) 4) Event Risk Assessment Checklist (PNOC) The Expert Working Group (EWG) organization under the HSSE Committee is to be revised to support the development of the new guidelines. The meeting has also agreed to revise the KPI Matrix to align with the terms for Committee Chairmanship; the new KPI matrix will run from , covering the period where PetroVietnam will be chairing the HSSE Committee. The Meeting suggested HSSE BDC to include brief details regarding the guidelines in the presentation / minutes of meeting. Page 7

8 5.2 Potential collaboration with ASCOPE by U.S. State Department Mr. Bradford Simmons, from Bureau of Energy Resources, U.S. State Department presented the potential collaboration between U.S. and ASEAN as appears in Appendix L 5.3 Update on the ASCOPE Gas Center (AGC) by PTT AGC has supported the working of TAGP for the initiation of ASEAN LNG Market study by providing funds to engage the commercial advisor to develop the ASEAN LNG Study and Strategy. For the commercial ASEAN LNG Study, AGC has funded an energy expert consultant, Wood Mackenzie, to study success factors and challenges towards integration of ASEAN market area for LNG import and to explore other opportunities in ASEAN LNG. 5.4 ASEAN LNG Study by Wood Mackenzie Mr. Dan Young, Wood Mackenzie presented the result of ASEAN LNG Study as appears in Appendix M. 6. OTHER MATTERS FOR CONSIDERATION 6.1 Updates on the Preparations for the 42 nd ASCOPE Council Members Meeting 7. DATE & VENUE OF FUTURE ASCOPE MEETINGS The ASCOPE Secretary In Charge briefed the Meeting on the hosting of future ASCOPE meetings and events as appears in Appendix N rd ASCOPE National Committee & Associated Meetings Petrovietnam agreed to host the 83 rd ASCOPE National Committee Meeting in Vietnam in Date and venue will be advised during the ASCOPE Council Meeting in Siem Reap, Cambodia in nd ASCOPE Council Member Meetings back-to-back with 84 th ASCOPE National Committee Chairpersons Meeting and 11 th ASCOPE C&E SLNG agreed to host the 43 rd ASCOPE Council Meeting back-to-back with the 84 th ASCOPE National Committee Meeting in Singapore in Date and venue will be advised during the ASCOPE Council Meeting in Siem Reap, Cambodia. Page 8

9 8. CONSIDERATION AND ADOPTION OF THE MINUTES OF THE 81 st ASCOPE NATIONAL CHAIRPERSONS MEETING The Meeting adopted the Minutes of the 81 st ASCOPE National Committee Chairpersons Meeting. 9. ACKNOWLEDGEMENT The Meeting expressed its sincere appreciation to PetroleumBRUNEI and ASCOPE National Chairperson for Brunei, for the efficient handling of the Meeting and to the Host, for the excellent arrangement and organization of the 81 st ASCOPE National Committee & Associated Meetings as well as the warm hospitality and accommodation accorded to all the delegates. The Meeting likewise congratulated the ASCOPE Secretariat for the outstanding and efficient performance as well as to all Chairpersons and Lead Coordinator of the ASCOPE Business Development / Working Committees and Task Force for the excellent leadership and accomplishment made by their respective committees and task force. 10. ADJOURNMENT The Meeting was adjourned at 5:00 p.m. on 26 May Page 9