The forward look for well services and interventions across the Asia Pacific market, and for other industry providers, bodes well as spending levels accelerate across the region.
In the latest insight paper by Westwood, offshore investment is expected to remain resilient despite a turbulent year for global oil markets.
Between 2025 and 2029, offshore engineering, procurement, construction and installation investment is projected to reach US$310bn globally, with APAC accounting for 27% of this spend, it notes.
Southeast Asia alone is set to award US$37bn in new offshore contracts, led by deepwater gas projects in Indonesia, and emerging carbon capture and storage (CCS) initiatives in Malaysia.
Thailand is also embarking on its maiden CCS scheme.
“Oil and gas companies – including regional NOCs – continue to prioritise decarbonisation, though the approach is evolving toward more disciplined oil and gas investment and cost efficiency,” Westwood notes in the paper.
“This shift is expected to drive down industry costs, even as supply chain margins remain under pressure.”
These macro trends are influencing not just oil and gas, but also the region’s growing offshore wind sector, it adds.
This could mean a weakening in rates for the offshore marine fleet that services the region’s oil and gas industry.
There are currently 84 active platform supply vessels and 449 anchor handling tug/supply vessels in the Asia Pacific region, operated by key incumbents such as Wintermar, HADUCO and Nam Cheong.
Dayrates for offshore support vessels have softened from recent record highs yet continue to exceed historical averages, according to Westwood, sustained by firm utilisation levels amid tightening supply as units are redeployed out of the region.
In its concluding remarks, Westwood notes that the Asia Pacific offshore market is navigating both challenges and opportunities as 2025 draws to a close.
From ageing fleets and cost pressures to the promise of offshore wind and deepwater gas, the region is poised to play a key role in the global energy transition, it adds.
As Asia Pacific continues to evolve, Westwood notes that staying informed and engaged will be key for all stakeholders across the energy value chain.
“As frameworks evolve and investment flows shift, collaboration between operators, service providers and governments will be essential to unlocking sustainable growth,” it states.
“Innovation in technology, financing and project execution will define the next chapter of offshore energy.”
