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Malaysia at the Forefront: Decommissioning Outlook from the D&A APAC 2024 Report

by | May 6, 2025 | Insights

Malaysian Assets Overview

Source: PETRONAS Activity Outlook 2021–2023

Malaysia by the Numbers

From PETRONAS’ Activity Outlook (2021–2023), here’s the scope of Malaysia’s aging offshore infrastructure:
– Facilities: 350+
  – 56% beyond design life
  – 18% aged over 40 years
– Pipelines: 750+
  – 38% beyond design life
– Wells: 3,000+
  – 45% idle
  – 500+ targeted for P&A by 2030

Challenges on the Horizon

The report outlines steep hurdles:
– Fragmented and evolving regulatory standards
– Uncertainty over liabilities and cost exposure
– Financing gaps and shortage of skilled resources
– High technical complexity and pressure to reduce environmental impact

Opportunities for the Region

Despite the challenges, Malaysia is already setting a precedent for regional collaboration, innovation, and leadership:
– Major D&A campaigns led by PETRONAS, including FPSO removal, pipeline repurposing, and artificial reefing projects
– Kitar Solutions, a JV between Sapura Energy and AF Offshore Decom, aims to offer end-to-end decom services in Asia
– Local companies like T7 Global and Mermaid Maritime are expanding their portfolios through inspection, ROV, and well abandonment services
– Rigs to Reefs strategy potentially reducing decom costs by up to US$22 million per platform

Looking Ahead: D&A APAC 2024 in Kuala Lumpur

The D&A Asia Pacific 2024 conference (Nov 12–13 in Kuala Lumpur) will gather operators, regulators, and suppliers to review best practices, contracting models, and P&A innovations. This comes at a pivotal moment as Malaysia plans to decommission 137 wells, 31 pipelines, and multiple subsea assets over the next 3 years.

Conclusion

Malaysia’s proactive stance and diverse project portfolio offer a blueprint for the rest of Southeast Asia. But as highlighted in the report, realizing this potential requires long-term planning, policy clarity, and unprecedented collaboration between stakeholders.

Full report available at: https://events.offsnet.com/DAAPAC2024#/Report?lang=en

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