Oil Country Tubular Goods (OCTG)

OCTG refers mainly to casing and tubing but also can refer to line pipe and other pipe used in producing or transporting gas and oil. Casing is the pipe that is used while drilling the well. It is placed in the well, cemented in place, and is what keeps the hole from sloughing in while drilling or producing.

Picture  Source : http://www.aogr.com

It “cases” the open hole. It comes in sizes ranging from 30” to 3 ½” in diameter. Usually several “strings” of casing are using in each well. Tubing is the pipe that is inserted in the well during well completion operations. This is the pipe by which the oil and gas flows to the surface. It is frequently removed from a well during workover or completion operations.

Tubing comes in sizes from 4 ½” to 1 ½” diameter. Casing and tubing each use special connectors in order to screw the joints together. These connectors are called connections and come in all types of sizes and thread profiles depending on the intended use.

Picture source : http://www.imoa.info

A joint of tubing or casing is made up of the “tube” and the “connection.” Connections are sometimes separate items called couplings or they can be integral or a part of the tube. Again, the intended use dictates that type of connection. Line pipe is a separate type of tube from tubing and casing. Line pipe is what makes up a pipeline. Pieces are connected together by welding. Line pipe is less expensive and less rigorously used than tubing or casing. Companies that manufacture these items are Tenaris, Vallourec, Sumitomo Steel, JFE  and others.

Malaysia Oil and Gas Feilds

Following are maps / illustration of Malaysia Oil and gas blocks :

Sources : http://investvine.com/malaysian-oil-and-gas-sector-to-keep-bullish-trend/

Supply Base In Malaysia

Following are two major supply base at Malaysia that has been supporting offshore drilling operation ever since. Both  supply bases is a fully integrated logistics hub tailored to the requirements of the Oil and Gas exploration, development and production activities in this region.

1. Asian Supply Base (ASB)

• ASB situated at Ranca-Ranca Industrial Estate, Labuan Island - the base sprawls across more than 345 acres of developed land areas.

          http://www.asiansupplybase.com/

2. Kemaman Supply Base (KSB)

• Loacated at Kemaman, Terengganu State. Kemaman Supply Base (KSB) which provides supply base services specifically catered to the oil & gas offshore industry in West Malaysia. KSB are wholly owned by EPIC Group.

          http://www.epicgroup.com.my/

Introduction to Malaysia Oil and Gas

Who spark Oil and Gas industry in Malaysia?

PETRONAS was not the first company to extract oil or gas in Malaysia. It was Royal Dutch Shell that began the oil exploration in Sarawak, then under the White Rajahs, at the end of the 19th century. In 1910, the first oil well was drilled in Miri, Sarawak. This became the first oil producing well known as the Grand Old Lady. Shell was still the only oil company in the area in 1963, when the Federation of Malaya, having achieved independence from Britain six years before, united with Sarawak and Sabah, both on the island of Borneo, and became Malaysia. The authorities in the two new states retained their links with Royal Dutch Shell, which brought Malaysia's first offshore oil field onstream in 1968.

Meanwhile, the federal government turned to Esso, Continental Oil, and Mobil, licensing exploration off the state of Terengganu, in the Malay Peninsula, the most populous region and the focus of federal power. By 1974, however, only Esso was still in the area. It made its first discoveries of natural gas in that year and then rapidly made Terengganu a bigger producer of oil than either Sarawak or Sabah. By 1974, Malaysia's output of crude oil stood at about 81,000 barrels per day (12,900 m³/d).

The Government of Malaysia contributes significantly towards policy and macro-economic planning to secure a sustainable and long-term success of the oil and gas industry. The Government’s main objective is to increase aggregate production capacity by five per cent every year up to 2020 to meet domestic demand growth while sustaining crude oil and LNG exports to overseas markets. In the Asia Pacific region, Malaysia aims to be the number one oil and gas hub by 2017, taking advantage of its strategic location at key shipping lanes as well as strong economic fundamentals in China, India and within Southeast Asia.

In Malaysia, energy policy for the upstream sector is determined by the Economic Planning Unit (EPU) and the Implementation and Coordination Unit (ICU), both of which reports directly to the Prime Minister. The Government focuses on efforts to enhance output from existing oil and gas fields, new marginal fields as well as exploration and development opportunities in deep-water areas. To this end, new tax and investment incentives under Petroleum Income Tax Act (PITA) were introduced in 2010 to promote oil and gas exploration activities.