FINANCE DEPARTMENT
Preface Budget Booklet provides CPOC approved budget figure by MTJA for the year 2024. This publication is divided into 6 sections, which are: 1. CPOC expectation 2024 WP&B 2. Key Assumptions 3. Revenue & Budget Snapshots 4. Department Key Deliverables/ Milestones 5. Budget Expenditure: i. Capital Expenditure (CAPEX) iiOperatingExpenditure(OPEX)
ii. Operating Expenditure (OPEX) 6. 5 Years Plan & Historical Summary The department gratefully acknowledges co-operation rendered by all parties involved in making this publication a success. Every feedback and suggestions towards improving future publication is highly appreciated. Mohd Rafik Md Taha Finance Manager May 2024 i
Contents No Contents Page 1 Preface i 2 Contents ii - iii 3 CPOC expectation Year 2024 WP&B 1 - 3 4 Key Assumptions 4 - 5 5 Revenue Snapshots 2024 6
6 Budget Snapshots 2024 & Executive Summary 7 - 8 7 CAPEX Snapshots 11 8 CAPEX Key Deliverables / Milestones 12 – 13 9 CAPEX Budget Expenditure 14 – 18 10 OPEX Snapshots 19 11 Production OPEX Key Deliverables / Milestones 20 12 OPEX Budget Expenditure 21 - 25 ii
Contents No Contents Page 13 Business Support Key Deliverables / Milestones 26 – 27 14 5 Years Plan Summary 28 15 5 Years Historical Summary 29 16 Appendix: i. Project Engineering Work Program
- Phase 6 Integrated Schedule 31 - Phase 7 Integrated Schedule 32 ii. MTJA Approval Letter WP&B 2024 33 – 41 17 Contact Person 42 iii
CPOC Expectation 1. CPOC is required to strictly abide: i. The provisions of the Production Sharing Contract. ii. Procedures and guidelines as outlined by MTJA including Non-Cost Recoverable (NCR). iii. Ensure compliance to all relevant governance issued by MTJA. iv. To meet general expectation outlined by both shareholders. 2. Under Article 3 of the Production Sharing Contract, CPOC required to: i. Provide detailed 2024 WP&B for each activity, namely exploration, Year 2024 Work Programme & Budget (WP&B)
yypdevelopment and production, by quarterly period including all relevant data, information and estimated costs, duration of each operation for eac h project, the estimated monthly rate of production for each Oil Filed or Gas Field. ii. No Petroleum Operations shall be carried out unless and until the relevant 2024 WP&B have been approved in writing by MTJA. iii. If there is any changes, CPOC may without the prior MTJA approval make minor changes, provided such changes shall not increase or decrease the approved Budget for any affected expenditure items by more than ten per cent (10%) and do not substantially alter the general objectives of the Work Programme. Any other changes shall require the prior written approval of MTJA. 1
CPOC Expectation 3. CPOC is required to obtain MTJA’s approval to carry forward any approved Year 2024 Budget or balance thereof not expended by 31st December 2024. 4. The approval given for 2024 Work Programme & Budget shall not be construed as a precedent in respect of similar items of expenditure included in future Work Programme & Budget submissions. 5. Approval for Decommissioning Fund amount to be cost recoverable is subject to MTJA’s approval. The actual amount will be determined based on approved reservesandadditionalfacilitiesinstalledintherespectiveperiod.Year 2024 Work Programme & Budget (WP&B)
reserves and additional facilities installed in the respective period. 6. To further minimize and manage its CAPEX and Unit Production Cost throug h OPEX. 7. CPOC is required to obtain prior approval from MTJA on any research or study intended to be funded via MTJA research sponsorship. 8. CPOC must ensure effective and meaningful participation of Malaysia an d Thailand nationals in terms of manpower in order to minimize dependency on expatriate personnel. 9. Cost recovery will be determined only after MTJA’s audit verification. 2
10. Under Shareholders expectation: i. WP&B input is supported by proper technical and commercial justifications and detailed doability of activities (operations, maintenance and development). ii. Ensure compliance to all relevant governance and guidelines issued by MTJA. iii. Secondee tariffs need to be approved as per Joint Operating Company Agreement,beforeincorporationintheWP&B.CPOC Expectation Year 2024 Work Programme & Budget (WP&B)
Agreement, before incorporation in the WP&B. 11. CPOC require to commit the success of Phase 6 in 2024 by: i. Drilling campaign to ensure both rigs readiness for spud in September & October 2024. ii. First gas to be in Week 4 December 2024 12. CPOC target to achieve cost minimization amounting to 23MMUSD mainly from: i. Tender negotiation/ strategy 8.5MMUSD. ii. Drilling & Well Service Optimization 8.0MMUSD. iii. Long term contract MGO (e-auction) 4.0MMUSD. iv. Phase 6 - Execution optimization on Construction, Engineering and T&I 2.0MMUSD. 3
Key Assumptions • The conversion rate forecast proposed are in line with both Shareholders assumption. OilPiftdiliithbthShhldtiConversion Rates & Oil Price 2024 2025 2026 2027 2028 US$ / MYR 4.30 US$ / THB 31.00
• Oil Price forecast proposed are in line with both Shareholders assumption. 2024 2025 2026 2027 2028 US$ / BBL 73.00 68.00 65.00 4
Key Assumptions • Gas prices based on the formula stipulated in GSA* and its supplementary agreements. Table below illustrates the gas price for each Contract Period**: Gas PricePeriod Gas Price GSA2 Gas Price GSA3 1 Oct 2023 - 30 Sept 2024 6.4575 6.8777 1 Oct 2024 - 30 Sept 2025 5.9460 6.6834 1 Oct 2025 - 30 Sept 2026 5.6138 6.3650
*GSA: Gas Sales Agreement ** Gas Sales Agreement 2: 1 Oct 2023 – 30 September 2026 Gas Sales Agreement 3: 1 Oct 2023 – 30 Sept 2029 1 Oct 2026 - 30 Sept 2027 - 6.1041 1 Oct 2027 - 30 Sept 2028 - 6.1320 1 Oct 2028 - 30 Sept 2029 - 5.9871 5 *Private & confidential. Restricted for internal use only
Revenue Snapshot 2024 Gas & Liquid Revenue 2024 by Quarter MMUSD 869.6 Year 2024 Average Gas Price (US$ / MMBTU) 6.4 Average Liquid Price (US$ / BBL) 73 Gas Volume (BSCF) 105 Average Gas Volume/day (MMSCFD) 287 LiquidVolume(MMBBL)31
170.0 161.0 154.2 161.7 646.9 65.7 43.8 69.4 43.8 222.7 Q1 Q2 Q3 Q4 Total Gas Liquid 6 74.4 % 25.6 % 235.7 204.8 223.6 205.5 Liquid Volume (MMBBL) 3.1
• Plan 7 days Full S/D for AGR Coolers change out in April, 10 days Partial S/D for BC & SC Engine change out in August and 2 days Partial S/D for splash pigging in November. • Plan 7 days each Partial S/D for Phase 6 host tie-in activities in July & August. 2024 Sales Gas Forecast
7
• Continue to maximize liquid hydrocarbon production. 2024 Liquid Hydrocarbon Forecast
8
Budget Snapshots 2024 TotalBudgetCAPEX Dev. Drilling Dev. Project 234 | 66% OPEX Production OPEX 114 | 62% Abandonment Cess 34 | 19% MMUSD Budget Amount / Budget Percentage
Total Budget 539 112 | 31% Dev. Subsurface 8 | 2% Fixed Assets 1 | 1% Total CAPEX: 355 General and Admin 23 | 12% PSC Commitments & Others 7 | 4% Total OPEX: 184 Admin Overhead 6 | 3% 9
2024 WP&B Executive Summary CAPEX 355 MMUSD OPEX 184 MMUSD 539 MMUSD Sales Volume Revenue UPC 20.5 MMBOE 870 MMUSD 5.6 $/BOE ZERO• Remaining Hydrocarbon Resources study • Phase 8 E&A campaign preparation • Additional Infill candidate study Cost-effective budget prioritizing on resource addition and reserve monetization
Subsurface Resource Addition Reserve Monetization GHG Reduction Journey Business Support • Carbon Capture, and Storage (CCS) Phase 2 study • Low BTU Flare and Emission Reduction & Revenue Generation study • Digitalization alignment with the business strategy • Efficient warehouse spaces, vessel resources & jetty management • Succession Planning localization effort 2024 Target • 105 BSCF Sales Gas • 3.0 MMBBL Liquid HC Production • Phase 7 FDP & SA GSA#4 Approval and Pre-FID (Site Survey, Topside Re-use & FEED) • Phase 6 first gas by December 2024 • New modification activities for AGR Coolers upgrade study 10
CAPEX Snapshots 2024 MMUSD Budget Amount / Budget Percentage Dev. Drilling (112 | 31%) • Dev. Phase 6 (111 | 31%) • Infill ( 1 | 0.3%) - Phase 6 first gas by December 2024 Dev. Project (234 | 66%) • Dev. Phase 6 (217 | 61%) • Modification (16 | 5%) • Others (1 | 0.3%)
355 CAPEX Fixed Assets (2 | 1%) 11 Dev. Subsurface (8 | 2%) • Geological & Geophysical (2 | 1%) • Petroleum Engineering & Others (6 | 1%)
CAPEX Key Deliverables / Milestones Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Development Project Phase 6: ADC, ADD, ADE, JKC & JKD - EPCI EPC Offshore T&I ADC & JKD (SIMOPs HUC) - HUC Phase 7: MDH, JSC, ADG & MLA ** Pre-lim scope Rev.0 Rev.1 MTJA BoD (September) - FDP FDP - Survey Survey - FEED FEED - Topside Reuse (x4) Procurement Handover - EPCI (x4 New Jacket) Bidding Development Drilling 2023IfillWllJKAJKB&MDF
2023 Infill Wells: JKA, JKB & MDF Plan: 1 Well MDF (1) Phase 6: ADC, ADD, ADE, JKC & JKD First Gas (December) Spud first well on 2 ADC (7) - Drilling Campaign – Rig Topaz Driller Plan:7 wells nd Sept Spud first well on 2 JKD (7) - Drilling Campaign – Rig T16 Plan: 7 wells nd Oct Development Subsurface Field Development Plan 2023 Infill Campaign (JKB + JKA) Post-drilled 2023 Infill Campaign (MDF) MDF (2) Post-drilled Phase 6 Campaign - Topaz Driller (ADC, JKC) Well Optimization + Targeting + Well Proposal ADC Phase 6 Campaign - Rig T16 (JKD, ADE, ADD) Well Optimization + Targeting + Well Proposal JKD Well Optimization + Targeting + Well Proposal Phase 7 FDP Phase 7 (MDH, JSC, ADG, MLA) + 2029 Infill Campaign Remaining HC Resources Assessment Total Prospectivity & Maturity Study GHG Reduction Roadmap: CCS Phase 2 Study CCS Phase 2 (Storage Development Planning) 12
EPCI Phase 6 Key Deliverables / Milestones 2024 Activities (ver20230630) Q1 Q2 Q3 Q4 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec EPCI Bidding EPCADC JKD JKC ADD ADE OFFSHORE T&I Host tie-in Pipelines
13 ADC JKD JKC ADD ADE DEVELOPMENT DRILLING Survey & Evaluation ADC (16 wells) - Rig#1 JKC (16 wells) - Rig#1 JKD (13 wells) - Rig#2 ADE (12 wells) - Rig#2 ADD (16 wells) - Rig#2 HOOK-UP & COMMISSIONING ADC (SIMOPS Batch#1,2,3,4) JKC (No SIMOPS) JKD (SIMOPS Batch#1,2,3) ADE (SIMOPS Batch#1,2) ADD (No SIMOPS)
CAPEX Expenditure Development Project Q1 Q2 Q3 Q4 2024 Dev. Phase 3 12 84 - - 96 Dev. Phase 4 3 75 - - 78 ‘000USD Dev. Phase 5 58 26 - - 84 Dev. Phase 6 57,431 98,270 43,585 18,347 217,634
14 Andalas C Platform 13,923 21,360 14,821 673 50,777 Andalas D Platform 10,641 18,295 2,191 8,079 39,206 Andalas E Platform 9,685 18,234 2,092 8,466 38,478 Jengka D Platform 14,005 20,703 15,057 828 50,593 Jengka C Platform 9,177 19,678 9,424 301 38,580 Dev. Phase 3, 4 & 5 expenditure: • Project support • Manpower cost
CAPEX Expenditure Development Project Q1 Q2 Q3 Q4 2024 Dev. Phase 7 216 165 244 238 863 Jengka St.Ctr Platform* 54 41 61 59 215 Mali-A Platform 54 41 61 59 215 Muda-H Platform 54 41 61 60 216 ADFPlatform54416160216‘000USD
ADF Platform 54 41 61 60 216 Modification 2,412 4,932 2,225 6,296 15,865 Engineering Studies - 113 463 950 1,525 Hook Up & Comm. 94 - - - 94 Project Support HUC 94 71 - - 166 FEED 2,063 4,622 1,616 5,199 13,500 Project Support Modif. 161 127 146 147 580 TOTAL 60,132 103,552 46,054 24,881 234,620 * Jengka South Centre Platform 15
CAPEX Expenditure Development Drilling Q1 Q2 Q3 Q4 2024 Wells No. Dev. Drilling 1,350 1,350 17,471 90,960 111,131 Dev. Phase 6 1,350 1,350 17,471 90,960 111,131 Andalas C Platform 16 - - 15,474 42,177 57,651 ‘000USD
Jengka D Platform 13 - - 1,097 48,783 49,880 1,350 1,350 900 - 3,600 General Operating Expenditure Dev. Infill Drilling 729 - - - 729 Muda F Infill Platform 2 729 - - - 729 TOTAL 2,079 1,350 17,471 90,960 111,860 16
CAPEX Expenditure Development Subsurface Q1 Q2 Q3 Q4 2024 - - 349 1,681 2,030 Geological & Geophysical - - - 1,221 1,221 Geophysical Site Survey - - 349 460 809 Consultancies & ManpowerServices‘000USD
Manpower Services Petroleum Engineering - - - 1,050 1,050 - - - 1,050 1,050 Petroleum Engineering Studies & Services 1,296 1,301 1,132 1,143 4,872 Allocated Subsurface G&A TOTAL 1,296 1,301 1,481 3,874 7,953 17
CAPEX Expenditure Fixed Assets Q1 Q2 Q3 Q4 2024 Office Equipment - - 20 - 20 - - 270 - 270 Telecommunication Equipment Computer Hardware - 45 125 - 170 ‘000USD
Computer Software 120 40 - 350 510 Consumable Asset - - 1 - 1 MDLQ Asset - - 3 5 8 TOTAL 120 85 419 355 979 18
OPEX Snapshots 2024 OPEX Production OPEX (114 | 62.1%) • Operation Abandonment Cess (34 | 18.7%) GldAdiMMUSD Budget Amount / Budget Percentage
184 p• Maintenance • Logistics • Others General and Admin (23 | 12.3%) • Manpower • Business Travelling • Consultancy • Staff Development • Office expenses PSC Commitments & Others (7 | 3.6%) Admin Overhead (6 | 3.3%) 19
Production & Operations Key Deliverables / Milestones 2024 Key Maintenance Activities Description Maintenance Construction Actual/ Outlook 19 days: 7 days Full S/D + 12 days Partial S/D 19 days Partial S/D Key Shutdown Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Plan: 38 days 2D Splash Pig 10D Partial S/D* 7D Full S/D* Maintenance: 19 days 7D Phase 6 Tie-in 7D Phase 6 Tie-in 5DRig* Construction: 19 days Maintenance Activities Full Shutdown
* Condition based ** Performance based 20 7 days Full S/D 1. AGR Coolers change-out 2. BC#2 engine change-out 3. BC & SC PM and Boroscope inspection 4. BC PCHE Cleaning and inspection ** Partial Shutdown 10 days Partial S/D 1. SC#1 engine and DGS change-out 2. BC#1 or BC#2 compressor bundle and DGS change-out * 3. BC & SC PM and Boroscope inspection 4. Pressure vessel cleaning & inspection 5. BC PCHE cleaning and inspection ** 6. Critical valves and PSV maintenance Other activities JKA-MDPP Splash pigging (3 monthly basis) Coincide Coincide Coincide 2 days Non-routine activities 1 month Underwater Campaign (Phase 3, 4 & 5: Inspection and Phase 1 & 2: Repair) 1 month Intelligence pigging (Phase 5, TPB-TPA, MDG-MDE and ADB-JKA) MDPP and MDLQ painting campaign (critical area) 1 month Construction Activities Rig activities MDF - Rig down 5 days Engineering & Modification Projects ADC – ADB Host Tie-in (Phase 6) 7 days JKD – JKA Host Tie-in (Phase 6) 7 days
OPEX Expenditure Production Q1 Q2 Q3 Q4 2024 Operation 6,290 6,611 6,541 8,654 28,096 Maintenance 3,822 14,899 8,540 8,266 35,527 Well Services 1,867 1,734 1,807 1,742 7,150 Project Modification 704 601 545 791 2,641 ‘000USD
jLogistics Operation Support 6,405 7,798 7,507 6,142 27,852 Departmental Costs 4,099 2,899 2,797 2,938 12,734 TOTAL 23,187 34,542 27,737 28,534 114,000 21