Malaysia Thailand Joint Authority (MTJA) Research Cess Fund

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MALAYSIA-THAILAND Joint Authority www.mtja.org

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Malaysia Thailand Joint Authority (MTJA)

Research Cess Fund

As of 11 February 2015

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Presentation Outline

 Aspiration

 Research Cess Fund Projects & Activities to date

 MTJDA Overview

 Background

 Organization Relationship

 Research Cess Fund

 Objective of Research Cess Fund

 General Guidelines of Utilizing the Fund

 Research Cess Fund Proposal Guidelines

 Workflow to Apply for the Research Cess Fund

 Research Cess Fund Organization Structure

 Research Cess Project Council (RPC)

 RPC’s Roles & Responsibility

 Fund Utilization to Date

 Q&A

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• MTJA targeting to have more than 2 Research Projects in 2015, utilizing the Research Cess Fund

• Plan to start a working group discussion in Q2 2015.

Aspiration

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Research Cess Fund – Project & activities to date

1. MJTA had approach two research entities in Malaysia and one institute in Thailand in 2011 & 2012 respectively. However no firm projects were agreed.

2. In Mid 2013, MTJA had to decline a local institute request to utilize the Research Cess fund because it didn’t meet the Research Cess Fund criteria

3. MTJA conducted Business Strategy in January 2014

4. MTJA hired a consultant to conduct EIA studies for JDA and initiated the study in February 2014

5. MTJA initiated Hydrocarbon Prospectivity and Basin Study for JDA in March 2014.

6. Presentation to Deputy Vice Chancellors Of Malaysia Public Universities Meeting No. 34 at Univerisiti Sains Islam Malaysia (USIM) on 30 September 2014.

8. Presentation to Malaysia Ministry of Science, Technology and Innovation (MOSTI) at Presint 1 Putrajaya on 21 October 2014.

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• Objective of Research Cess Fund is for the purpose of supporting any research and development in the fields of science and technology relating to exploration or exploitation of petroleum or natural resources for the Joint Development Area (JDA).

(Regulation 7, Part IV Malaysia Thailand Joint Authority (Payments of Royalty and Other Proceeds from Petroleum Production to the Governments) Regulations 2004. )

• Research project should be beneficial to the MTJA, PSC Operators, and both countries, Malaysia and Thailand.

Objective

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BONGKOT

GULF OF THAILAND

APPROX. 260 KM

APPROX. 180 KM

APPROX. 100 KM

APPROX. 120 KM

APPROX. 150 KM

APPROX. 310 KM TO KERTEH

JERNEH

Songkhla

Pattani

THAILAND

Kota Bahru

MALAYSIA

50 km.

N

MTJDA Background - Location Map

JDA is the overlapping continental shelf claimed by both Malaysia and Thailand, approximately 7,250sq km

MTJDA

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MTJA Organization Relationship

MTJA BOARD

GOVERNMENTS AGENCIES

Revenues, Customs, Navy, Maritime

MTJA

Management

GAS BUYERS PTT & PETRONAS (Pipeline Operator : TTM) MALAYSIAN

GOVERNMENT (PM’s Dept.)

THAI

GOVERNMENT (Ministry of Energy)

Economics Planning Unit (EPU) Department of Mineral Fuels (DMF)

CTOC => CHOC in 17^th March 2004

Block

B-17, C-19, B17-01

PTTEPI 50%

PCJDA 50% &

CPOC

Operator

Shareholders (Contractor)

Carigali-PTTEPI Operating Company HESS 50%

Block A-18

PCJDA 50% &

Operator

Shareholders (Contractor)

Carigali-Hess Operating Company

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• Objective of Research Cess Fund is for the purpose of supporting any research and development in the fields of science and technology relating to exploration or exploitation of petroleum or natural resources for the Joint Development Area (JDA).

(Regulation 7, Part IV Malaysia Thailand Joint Authority (Payments of Royalty and Other Proceeds from Petroleum Production to the Governments) Regulations 2004. )

• Research project should be beneficial to the MTJA, PSC Operators, and both countries, Malaysia and Thailand.

Objective of Research Cess Fund

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1. Fund to be utilized for fundamental, advanced research or application type of research.

2. Research should address issues pertaining JDA operations.

3. Research to be carried out by Third Parties, i.e. University or Joint Industry effort with priority to local content.

4. Research to be managed by MTJA.

5. Research projects selection and expenditures for research projects to be approved by MTJA Board Members.

6. Research that has potential for Intellectual Property (IP) and commercialization in later stage.

7. Reasonable research time frame and budget.

8. Eligibility and good track records of researchers.

General Guidelines of Utilizing the Fund

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Research Cess Fund Proposal Guidelines

1. Project tittle

2. Proposal objective

3. Project Introduction and background 4. Research Project objective and strategy 5. Project details:

• Workscope and Methodology

• Duration and Schedule

• Cost estimate and cost comparison

• Organization structure

• Performance track record – past experience, financial and Health- Safety-Environment (HSE) record.

• Reporting

6. Evaluation & Justification

• Technical evaluation

• Commercial evaluation

• Intellectual Property (IP) and commercialization

• Beneficial to JDA & both Malaysia and Thailand 7. Conclusion and Recommendation

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Workflow to Apply for Research Cess Fund

Application / Proposal

MTJA Management

Research Cess Project Council (RPC)

MTJA Board of Directors

Project Execution / Implementation

Refers to:

 Research Cess Fund objective

 Review and propose the proposal to RPC

 Endorse research project proposal

 Initiate Project Coordinators Team

 Recommend the proposal to the MTJA Board (RPC Meeting is on call basis)

 Approve the research project proposal (Board Meeting is every quarter)

 Project execution by Third Party

 Project management by Project Coordinators Team

 Project review and update to MTJA & RPC

 Project report and update to MTJA Board

 General Guidelines of Utilizing the Fund

 Research Cess Fund Proposal Guidelines

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PROJECT COORDINATORS

Research Cess Project Council

RPC STEERING COMMITTEE

DECISION COMMITTEE

Research Cess Fund Organization Structure

Project team is a support group consist of MTJA, CHOC, CPOC and any member assigned by MTJA or Governments. Project team will be formed after approval by RPC.

MTJA BOARD

Project Team

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Research Cess Project Council

MTJA Research Cess Project Council (RPC) was formalized on 20

^th

February 2013 which consist of 10 members.

Chairman

Chief Executive Officer , MTJA

Deputy Chief Executive Officer MTJA

E&P Manager MTJA

E&P Assistant Manager MTJA

General Manager Carigali Hess

General Manager Carigali PTTEPI Dr. Mohd Mokhtar

Head of Secretariat,

National Science Research Council, Ministry of Science, Technology & Innovation

(Alternate : Dr Mohd Nor Azman Hassan)

Prof Dato’ Dr. Mazlin Mokhtar Deputy Vice Chancellor Research and Innovation Universiti Kebangsaan Malaysia (Alternate : Dr. Sarah Abdul Ghani Aziz)

Mrs. Premrutai Vinaiphat Director, Internal Affairs Division, Department of Mineral and Fuels

Mrs. Prapai Numthavaj Deputy Executive Director Petroleum Institute of Thailand

Governments representatives MTJA representatives Operators representatives

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Research Cess Project Council:

• To study and review research project proposals through independent evaluations.

• To recommend the most promising project proposals to MTJA Board for final funding decision.

• To ensure the research project proposal is in line with MTJA research objective.

• To appoint several research project focal points/coordinators from MTJA and Contractors.

Research Project Coordinators:

• To coordinate the research projects and conduct the preparatory work for the council member to consider.

Research Cess Project Council - Roles & Responsibility

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• Research Cess Fund has been utilized for projects below;

1) MTJA Business Strategy Study in January 2014 – completed.

2) EIA Research Project for JDA (Consultancy services) in August 2014 – completed

3) EIA Research Project for JDA (Project execution), started in December 2014.

- ongoing

4) JDA Hydrocarbon Prospectivity and Basin Study, started in December 2014.

- ongoing

Research Cess Fund – Utilization to date

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RESEARCH CESS FUND

Malaysia-Thailand Joint Authority (MTJA) Suites 06-01, Menara See Hoy Chan,

No. 374, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia

Project Co-ordinator: Mohamad Suhaimi Website: mtja.org

Email: [email protected]/[email protected] Tel: 603-2172 2222/019-289 8080

Fax: 603-2172 2223

Contact Details