Decommissioning Southeast Asia’s aging oilfields offers a vast but challenging market opportunity.
More than 200 offshore fields are expected to stop producing in Southeast Asia by 2030 with total decommissioning costs estimated to range from $30 billion to as much as $100 billion.
Indeed, the potential market opportunity in Southeast Asia could be huge with more than 1500 platforms and over 7000 wells projected to need decommissioning by 2030.
Significantly, the decommissioning industry in the region will evolve differently from the rest of the world given the vast number of relatively small structures and wells. As a result, the region will need to develop its own specialised industry, which does not yet exist, Philip Whittaker, a partner specialising in oil and gas at Boston Consulting Group, told Energy Voice. The biggest opportunities will be in Thailand, Malaysia and Indonesia, all home to large national oil companies (NOCs) together with leading international companies, added Whittaker.
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