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Asia Decommissioning Rigzone

Decommissioning Challenges Escalating in South East Asia

For many decades now, South East Asia has been an important oil and gas producer, accounting for five percent of current global oil production. But now, age has caught up with oil and gas infrastructure in Myanmar, Thailand, Vietnam, Brunei, Malaysia and Indonesia.

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Globe of Southeast Asia

In February 2018 the Jakarta Post estimated that over the next decade, around 380 fields will cease production, leaving 35,000 offshore wells serviced by 2,600 platforms incorporating 7.5 million tonnes of steel and more than 55,000 kilometres of pipelines for decommissioning.

Decommissioning costs

Decommissioning is expensive. Wood McKenzie estimates that operators of offshore installations in the Asia-Pacific region, which includes the South East Asia region, Australia and New Zealand, could face a total decommissioning bill of over $100 billion for just 2,600 platforms and 35,000 wells. Between 2018 and 2022, the spend on decommissioning in Australia and Malaysia alone could amount to some $25 billion.


Most countries in the region, apart from Australia and Thailand, have yet to develop the comprehensive legislative and regulatory frameworks for decommissioning. Read more at https://www.rigzone.com/news/decommissioning_challenges_escalating_in_south_east_asia-04-nov-2019-160220-article/

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