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Petronas Research & Scientific Services (PRSS), the R&D arm of Malaysian state-owned oil company Petronas, has set itself an ambitious target. It aims to become the premier hydrocarbons R&D organisation by the year 2005 – with the help of DNV.

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Kuala Lumpur's Twin Towers, the tallest building in the world, is home to Petronas headquarters.

When PRSS was set up as its R&D arm in 1978, Petronas had an ambitious agenda for it: the critical key for Petronas to go global. Today, Petronas is a leading oil and gas company with a revenue of USD, 16 million, business in more than 25 countries, and about 20,000 employees. PRSS has played a central role in this development and is now looking for new ways to further improve its products and services, for Petronas and for other national and international customers. Encik Nordin Md Nor, Managing Director and Chief Executive Officer of PRSS, says: Sound relationships with suppliers and subcontractors are key to achieving optimal products, services and delivery in the competitive marketplace. As a global company, we must work together as a team and seek innovative international partners to develop relationships that put quality, price and delivery hand-in-hand with efficient services and end-products.

Risk-Based Inspection
PRSS has invested in new technologies in order to match or surpass the services currently provided by its competitors. Innovative partnerships with international companies such as DNV have played a major role in these modernisation efforts. The Petronas Group itself has benefited from various new technologies, including the use of such well-proven methodology as Risk-Based Inspection (RBI). Developed by DNV, RBI helps determine refinery and process-plant risks and their cost-effective prevention. DNV Kuala Lumpur has performed three RBI studies for Petronas Gas Bhd since 1998. The first study showed that the intrusive statutory inspections could be reduced by 3550%, leading to savings of USD 2.25 million. DNV is also carrying out RBI projects on offshore platform structures and pipelines for Petronas Carigali Sdn Bhd. These offshore RBI projects cover the assessment of 60 jacket structures and 286 submarine pipelines, including screening and a more detailed assessment of selected platforms and pipelines.

Alliance agreement
In March of this year, a Strategic Technology Alliance (STA) agreement was signed by PRSS and DNV. The STA aims to establish a close working relationship and technology transfer between the two companies. The STA is valid for five years and covers all projects involving the PetronasGroup related to:
" Risk-based inspection (upstream and downstream)
" Project risk management
" Abandonment planning and risk assessment
" Pipeline risk management
" Asset integrity
" Reliability, availability and maintainability assessments
" Ship-condition assessments

Encik Nordin Md Nor comments: The STA will enable PRSS to further enhance its technological competencies. The sharing of knowledge and information between the two companies will also aid technology transfer and the development of manpower expertise to help us extend our value-adding R&D and technical consultancy solutions. DNV Malaysias Managing Director, Abdul Hak Md Amin, adds For several years DNV has worked closely with Petronas to help position it in the forefront of the worlds oil companies. Now with the STA signed, DNV will continue to provide appropriate technologies, suitable competent personnel, equipment and facilities to undertake projects jointly with PRSS. The STA primarily aims to establish cooperation between PRSS and DNV Kuala Lumpur, though it is also intended to have a wider coverage and incorporate work on third-party projects in South East Asia. In the ongoing RBI projects, DNV personnel are joining PRSS engineering and production teams in an effort to make the work process an empowering one. New software components are also playing a key role. PRSSs initial investment is considerable, but Nordin believes the STA is developing a win-win situation for both companies. The STA makes it easier for both parties to explore and develop mutually beneficial business models focusing on the application and development of niche technology. Based on our experience so far, were confident that the STA with DNV will help enhance our technology and competence levels so that we can achieve our goal of becoming the premier hydrocarbon R&D organisation and continue to provide our customers with the best possible services and products.

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