Untitled - Teknik Kelautan / ITB

Oil & Gas Project Delivery Incorporating The EPCIC and PSC
Procurement Approach: The Malaysian Experience
Mohammad Fadhil Mohammad, Surya Fareeza Abdul Rahim, Munirah Roslan
& Siti Syariazulfa Kamaruddin
Centre of Studies for Quantity Surveying, Faculty of Architecture, Planning &
Surveying, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia
fadhilnavy@yahoo.com/ mfmohammad@salam.uitm.edu.my
Abstract. The oil and gas industry has developed and adopted many project delivery
approaches. Production Sharing Contract (PSC) is one that has been widely used in
the oil and gas industry for decades in developing transitional economies as they are
in line with government aspirations to be more proactive in managing their own oil
and gas resources. PSC generally require the establishment of an organization
partnership between the public which is the government and private sectors to
monitor operations and participate in decisions regarding production levels and
accounting practices. Engineering, Procurement, Construction, Installation and
Commissioning (EPCIC) contract on the other hand is usually a down-line contract
between the Operator and the various contractors and/or subcontractors undertaking
the project delivery works. This paper will attempt to put forward the key ingredients
and structure of the PSC and EPCIC as experienced by the National Oil Company
(NOC) of Malaysia (PETRONAS) highlighting important characteristics in
delivering complex oil and gas projects. The main research methodology incorporate
literature reviews obtained from books, journals and related websites while the
primary data were gathered from case studies of the NOC. Lessons learnt and
comparative results from the data analyzed will also be presented in this paper.
Keywords: EPCIC, Production Sharing Contracts, Procurement, Project Delivery
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