In Q1 2026, offshore oil and gas decommissioning and abandonment activity across the Asia-Pacific region remained firmly in the preparatory and planning phase.
Malaysia continues to lead visible progress through targeted contracts and regulatory enhancements, while other key nations such as Indonesia, Thailand, Vietnam, and Brunei are focused on applying established frameworks to address ageing infrastructure.
With many fields approaching the end of their productive lives, the region is bracing for a significant decommissioning wave, driven by maturing assets and the need for environmental compliance.
Malaysia saw the most concrete developments. T7 Global Berhad, through its subsidiary Tanjung Offshore Services Sdn Bhd, secured a contract from PETRONAS Carigali for well abandonment operations at the Zuhal East field.
HELMS Geomarine Sdn Bhd completed back-to-back geotechnical drilling campaigns in Sarawak waters from late January to the end of March, providing essential data for jack-up rig entries ahead of P&A activities.
PETRONAS reinforced its commitment by releasing the Activity Outlook 2026-2028 in January, which highlighted expanding well decommissioning and intervention programmes.
The national operator has established a Hydraulic Workover Unit (HWU) Academy to develop skilled talent for abandonment work, aiming to position Malaysia as a regional hub for these services.
In parallel, authorities introduced enhanced regulations on offshore platform removal, which now prioritise full restoration of the original seabed state to meet stricter environmental standards.
In contrast, other APAC countries reported no major new contract awards or campaign executions during Q1.
Indonesia continues to operate under the Oil and Gas Law, Government Regulation 35/2004, and MEMR Regulation No. 15/2018.
These require contractors to prepare post-operation plans covering well plugging, equipment removal, and site restoration, with abandonment and site restoration (ASR) funding obligations embedded in modern production-sharing contracts.
While no new amendments emerged, operators are actively applying these rules to legacy assets as production-sharing contracts near expiry, amid ongoing discussions about liability and cost estimation for ageing fields.
Thailand’s framework, governed by the Petroleum Act and the 2016 Ministerial Regulation on decommissioning plans and financial security, remains among the more advanced in Southeast Asia.
No fresh regulatory updates were issued, but concessionaires continued preparatory work on cost estimates and environmental assessments for Gulf of Thailand assets.
Vietnam relies on Circular No. 16/2024/TT-BCT and earlier decisions, mandating contributions to a decommissioning trust fund managed by PVN.
Brunei continues to apply its pre-existing Decommissioning and Restoration Guideline for offshore facilities, emphasising case-by-case assessments for removal and site clearance, particularly in sensitive or deep-water areas.
Overall, this reflects a focus on regulatory compliance and forward planning rather than large-scale execution. With approximately 200 offshore fields expected to cease production by 2030 and decommissioning costs projected at around US$100bn, Southeast Asia is methodically building capacity.
Malaysia’s proactive steps signal a maturing market, while other nations are steadily aligning operations with existing obligations to ensure safe, cost-effective, and environmentally responsible asset retirement in the years ahead.
