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.
In Q1 2026, Weatherford International demonstrated resilience in the Middle East despite geopolitical headwinds, securing strategic contracts and achieving notable technical successes that underscore its growing role in well intervention, completions, and digital optimisation across GCC countries.
The oilfield services provider reported a two-year well services contract awarded by a National Oil Company in the UAE.
This agreement covers a range of intervention and production enhancement activities, positioning Weatherford to support ongoing operations in one of the region’s key offshore and onshore basins.
The award comes at a time when operators are prioritising well integrity and production optimisation in mature fields.
In Saudi Arabia, Weatherford delivered two standout achievements. The company set a new global record for extended-reach wireline logging, successfully reaching 29,121 ft measured depth using its Compact Well Shuttle system.
This milestone highlights the technology’s capability to evaluate long, highly deviated wells efficiently without traditional conveyance methods, offering significant time and cost savings for complex reservoir characterisation in challenging offshore and extended-reach environments.
Equally significant was the successful execution of the first rigless thru-tubing sand-control gravel-pack operation in the Kingdom.
The intervention restored a shut-in gas well to full production by eliminating sand production without the need for a workover rig.
This rigless approach reduces operational complexity, minimises downtime, and lowers costs, advantages particularly valuable in offshore well intervention scenarios where rig mobilisation can be prohibitively expensive.
Weatherford expects this technique to become a recurring solution for sand management in the region.
Further digital progress was noted in Oman, where the company advanced its partnership with Petroleum Development Oman (PDO) by deploying Electric Submersible Pump (ESP) Predictive Analytics within the ForeSite Well Management System.
Moving from pilot to full operational use, this technology enables proactive well management, reducing failures and optimising artificial lift performance across gas and oil wells.
Weatherford’s Middle East/North Africa/Asia revenue for Q1 2026 reached US$476mn, reflecting a 5% year-on-year decline primarily attributable to heightened geopolitical tensions linked to the Iran conflict.
Sequential revenue fell 14%, driven by project suspensions, logistical disruptions, and reduced drilling and workover activity in several countries, including offshore operations in Saudi Arabia and the UAE.
Management estimates a US$30–50mn profit impact for H1 2026 but remains optimistic about a meaningful recovery in H2, contingent on regional stabilisation.
Despite these challenges, the company highlighted the strength of its local manufacturing and supply chain base, which helped mitigate early disruptions.
Executives pointed to a multi-year acceleration of capacity and resilience programmes across Saudi Arabia, the UAE, Oman, Iraq, and Kuwait, where Weatherford’s integrated offerings in drilling, completions, production, and well services provide a competitive edge.
With 20,006 barrels of oil per day generated from offshore Angola during Q1 2026, Afentra plc reported a stable asset performance, driven by the consistency of asset revamping and integrity workstreams.
Key workstreams as part of multi-year redevelopment plan in Angola for increased reserves recovery and production growth included water injection work, which reached up to 70,000 bwpd. The company now targets attaining 100,000 bwpd in H2 2026.
The Pambi platform has already undergone infrastructure upgrades for improved reliability and operational performance, and similar work is ongoing on the Cobo and Palanca platforms. The Palanca FSO is ready for safe operations over the next five years as it has received formal recertification.
As part of the company's 2026 light well interventions (LWI) programme that aims to complete 40 interventions work, six has been completed on the first quarter of the year.
Alongside the drilling of the Pacassa SW well as part of 2026 infill drilling and workover programme in Block 3/05, the company will also be tackling the Impala-2 development well. It aims from this well a potential gross production uplift of ~9,000 bopd and gross recoverable resources of over 100mmbo.
Hydraulic workover programme preparations are ongoing with execution planned for late 2026/27.
In Block 3/24, operational activities continued for the GPQ development, including the planning of a survey vessel programme to execute wellhead inspection, survey and measurement scope.
In a boost to rig activity in the US Gulf, Harbour Energy's subsidiary, LLOG Exploration Company LLC, has extended contracts with Seadrill Limited, adding approximately US$260mn to the drilling contractor's contract backlog.
The year-long contract extension secures ultra-deepwater drillship West Neptune's services for operations that are set to start in September 2026. On the other hand, the West Vela ultra-deepwater drillship will be operating for an additional duration of 270 days, which is likely to commence in August 2026.
“We are pleased to extend our working relationship with LLOG, building on more than a decade of productive collaboration and shared success. The strong operational performance delivered by the West Vela and West Neptune teams continues to help us win follow-on work,” said Seadrill's President and Chief Executive Officer, Samir Ali.
“Securing this backlog enhances revenue visibility and supports free cash flow generation as we navigate near-term softness in the US Gulf. The West Vela and West Neptune are positioned favourably for availability in 2027 as global floater utilisation is expected to improve,” he said.
This follows the last contract extension between Seadrill and LLOG Exploration for a four-month programme in the US Gulf, which secured approximately US$48mn to Seadrill’s backlog.
The Sevan Louisiana had also received a contract award in the US Gulf from an undisclosed operator for a two-month programme. This engagement is set to start directly after its current contract with Walter Oil and Gas. The campaign will mark the first use of the Trendsetter well-intervention equipment in the region.
A sustained US$100 / bbl oil price could unlock up to 2.1mn bpd of additional crude supply across South America by the mid-2030s, according to new analysis by Rystad Energy
Global oil supply plummeted by 10.1 mn bpd to 97 mn bpd in March, according to the IEA, with continued attacks on energy infrastructure in the Middle East and ongoing restrictions to tanker movements through the Strait of Hormuz sparking the largest energy crisis in history. The supply situation looks unlikely to be resolved any time soon. Even once the Strait of Hormuz re-opens, it will still take some time to re-establish oil flows and restore lost Middle East production.
“The Middle East conflict has done more than spike oil prices — it has exposed how dangerously concentrated global supply chains are around the Strait of Hormuz. South America is now positioned as the world’s most consequential source of incremental supply. The region offers scale, geologic quality and relative political stability at exactly the moment that the world is shopping for alternatives,” said Radhika Bansal, Senior Vice President, Oil & Gas Research, Rystad Energy.
Offshore developments in Brazil, Guyana and Suriname represent the most immediate source of upside, says Rystad. Fast-tracking projects across these markets could deliver more than 1mn barrels of oil equivalent per day (boepd) of additional production over the next decade, backed by around US$33bn in incremental greenfield capex through 2035. In Guyana, ExxonMobil is targeting up to 300,000 bpd from its Yellowtail project, which came online at an initial average production of 250,000 bpd, and Rystad believes debottlenecking could unlock an additional 80,000 to 90,000 bpd across the Errea Wittu, Jaguar and Hammerhead fields. However, limited shipyard capacity for new FPSOs remains a constraint.
In a high-price scenario, Rystad Energy estimates Venezuela, which has now re-entered the global market, could add 910,000 bpd by 2035, with majors such as ExxonMobil and Shell assessing opportunities and signing preliminary agreements, although progress will depend on sanctions relief and fiscal reform. Production could grow even more if more players come in as investor confidence improves. Increased participation in underdeveloped fields, particularly through partnerships with PDVSA, the state-owned oil and gas company, would further unlock additional production potential, Rystad comments.
As for Argentina’s Vaca Muerta, crude production, currently around 600,000 bpd, could reach as much as 1.5mn bpd in 2035 in a high price scenario, says Rystad.
“The pace of growth across South America will depend less on resource availability or economics and more on execution capacity, supply-chain constraints and the broader investment environment. Countries that provide clear fiscal and regulatory frameworks are better positioned to accelerate project sanctions and capture the upside from higher prices. Those that hesitate or are slow to move will simply watch the capital flow elsewhere,” Bansal added.
Well-Safe Solutions, a tier-one specialist in well decommissioning, has secured a multi-year agreement with Apache North Sea Limited to decommission platform and subsea wells in the Forties Field.
The programme is scheduled to commence in 2026, with Well-Safe Solutions taking responsibility for all well-related project management, well and subsurface engineering, and offshore execution for both platform and subsea wells.
The contract is expected to sustain hundreds of jobs in Aberdeen while providing a welcome economic uplift to northeast Scotland during a period of ongoing pressure on the sector and concerns around long-term workforce retention.
Phil Milton, Chief Executive Officer at Well-Safe Solutions, said:
“This award is a defining moment for Well-Safe Solutions and a testament to the confidence Apache has in our team to deliver safe, efficient and technically robust decommissioning solutions at scale.
“This contract award is exciting news for our business and for the wider economy, sending a powerful signal to the supply chain and helping to secure critical talent and resources. Today’s announcement is undoubtably a huge moment for our business and our industry, however, it comes at a particularly difficult time for our sector when we are hopeful of retaining the talent and capability that we have in the North Sea”
Industry capacity for mobile offshore drilling units able to carry out both drilling and decommissioning work on platform and subsea wells has fallen steadily in recent years. Only five semi-submersible rigs now remain in the UK Continental Shelf. This continued decline in available assets could hinder the UK’s ability to satisfy future energy requirements and fulfil decommissioning commitments, with thousands of wells expected to require decommissioning before the decade ends.
Donald Martin, Vice President, Decommissioning, Apache, commented:
“We are pleased to partner with Well-Safe Solutions on this large-scale decommissioning programme across the Forties Field. This contract reflects our commitment to delivering safe, predictable and cost-effective decommissioning through disciplined execution and with a high-performing, integrated team.
“Building on decades of successful production from one of the North Sea’s cornerstone assets, Apache is focused on maximising late-life asset value, reducing risk, and delivering a safe, efficient and disciplined transition into decommissioning.”
The latest award further strengthens Well-Safe Solutions’ standing as a strategic leader in the UK decommissioning market. It follows successful recent campaigns involving the Well-Safe Defender and Well-Safe Protector, as well as two other significant North Sea contract wins announced earlier this summer.
Halliburton has introduced the Volta all electric control system, a fresh step forward in intelligent completions technology designed to improve how reservoirs are managed and monitored
As part of the SmartWell portfolio, this new system focuses on delivering clearer insights, stronger control, and better overall performance throughout a well’s life.
Built using proven field technologies, the Volta system enables continuous monitoring of both well health and reservoir behaviour. This allows operators to act quickly, make informed decisions, and ultimately improve production outcomes. By reducing downtime and speeding up recovery after interruptions, the system helps avoid losses and supports higher annual output.
The integration of the Clariti digital reservoir management suite adds another layer of intelligence. It highlights opportunities to fine tune performance and ensures operators can respond effectively to changing conditions underground. The result is a more connected and responsive approach to managing wells.
Maxime Coffin, vice president, Halliburton Completion Tools, said, “As the company who introduced SmartWell® intelligent completions to the industry, the Volta all-electric control system represents a breakthrough in intelligent completions technology. With EcoStar safety valves, we are now the first to propose a fully electric completion to the industry. Its all-electric architecture reflects Halliburton’s focus on technology leadership, engineering excellence, and technical expertise in completion design and execution. It provides operators with a greater degree of precision, response speed, and improved efficiency to help maximize value throughout the life of the well.”
The design itself is simple yet effective. A single line mono conductor setup removes the need for hydraulic systems, making installation easier and reducing operational risks. Its modular structure also allows flexibility and quicker preparation before deployment.
By combining advanced hardware with intelligent software, the Volta system turns well completions into a fully digital process. Operators gain real time control and can adjust strategies quickly, ensuring consistent performance even in challenging reservoir conditions. This reflects Halliburton’s wider push towards digital solutions that connect technology, people, and operations to deliver reliable and efficient results.
Odfjell Technology has announced the signing of a five-and-a-half-year contract with ConocoPhillips Skandinavia AS for integrated services in the North Sea.
The contract period has been agreed until 31 December 2031, and covers the provision of platform drilling operations and maintenance services, tubular running services, well engineering, and well planning in Norway.
The contract also covers options for the provision of downhole equipment and permanent plug and abandonment execution. The agreement forms a strong foundation for the company’s growth in the market.
Kurt Meinert Fjell, EVP Operations at Odfjell Technology, said, “We are pleased to further strengthen our partnership through this contract. The agreement underlines the strong relationship between our teams and provides a strong foundation for continued innovation and value creation.”
Saipem has been awarded two offshore contracts in the Kingdom of Saudi Arabia under its long-term agreement with Aramco.
The first contract covers Engineering, Procurement, Construction, and Installation (EPCI) of one water injection tie-in platform, two water injection wells, approximately 5km of pipelines and 15km of 15kV cables at the Safaniya oil field.
The second contract includes the EPCI activities for four water injection wellheads, as well as associated subsea facilities, at the Safaniya oil field.
For the operations, Saipem will employ its construction vessels that are currently deployed in the region. These contracts strengthen Saipem’s presence in the Kingdom and further consolidate its longstanding relationship with Aramco.
Reconnaissance Energy Africa Ltd. has released its operational update and 2025 financial and operational results, alongside the renewal of its shelf prospectus.
Brian Reinsborough, President and CEO, said, "2025 was another transformational year for ReconAfrica as we progressed all aspects of our strategic goals. We completed our farm down transaction with BW Energy Ltd. which was a significant milestone for the Company. We made the strategic move to broaden our portfolio by entering the shallow waters of Gabon by signing the Ngulu PSC, which adds another discovery to our inventory and high potential exploration acreage. We entered Angola by signing the MOU to ensure we captured significant running room in the Damara Fold Belt in advance of drilling the Kavango discovery. And finally, we made a significant play opening discovery at the Kavango West 1X well. I congratulate the ReconAfrica team, and our partners, for making this an exceptional year of advancement for the Company."
Namibia
In Namibia, activities at the Kavango West 1X discovery well are progressing as planned, with optimised zone production testing expected to begin in early to mid-May. A five-inch production liner has been installed in the wellbore, enabling isolation and sequential testing of zones. Perforation and testing will cover six hydrocarbon-bearing intervals ranging from 45–75 metres in thickness across the Elandshoek and Huttenburg formations, assessing around 420 metres of hydrocarbon-saturated section. Testing will proceed from the deepest to the shallowest zone, with each phase potentially lasting up to 10 days, extending the programme to the end of June.
The company is also advancing preparations for a follow-up appraisal well located approximately 3 – 4 km southeast of the KW1X discovery. A successful appraisal well would support reserve booking and help progress toward a final investment decision (FID).
Gabon
The company has received all raw seismic data to begin a 3D reprocessing programme over the Loba oil discovery, along with an additional 400 sq km covering high-priority prospect areas. Final seismic reinterpretation is expected in Q4 2026 and will incorporate advanced Pre-Stack Depth Migration and Full Waveform Inversion technology to better image salt-related exploration plays across the concession. The dataset will support a resource report and appraisal well location selection for the Loba oil field.
Further details on the 2025 highlights and subsequent period are available on the ReconAfrica website
Perdana Petroleum has strengthened its position in offshore services after winning new vessel contracts from Petronas Carigali
The agreement involves the supply of two anchor handling tug and supply vessels to support offshore activities.
The contracts were awarded on April 8 to Perdana Nautika, a fully owned subsidiary of the company. These vessels will play a key role in maintaining smooth offshore operations, offering round the clock support for drilling rigs and installations. Their duties will also include towing and anchor handling, ensuring safe and efficient offshore movement.
The charter periods are set for 303 days and 224 days, with both contracts offering an option for an additional 40 day extension. This provides flexibility depending on operational needs.
Perdana Petroleum noted that the total contract value is not fixed at this stage, as it will depend on future work orders issued throughout the charter period.
Namibia draws in oil major bp's interests in three offshore exploration blocks as it seeks the acquisition of 60% stakes from Eco Atlantic Oil & Gas.
The move aligns with the major's upstream portfolio expansion strategy, and follows the exploration success of its Azule Energy venture in the region.
Once the formal approvals from the Namibian government are in, bp will assume operatorship of three blocks – PEL97, PEL99 and PEL100 – in the Walvis Basin while Eco Atlantic continues as a partner, alongside Namibia’s national oil company NAMCOR, following transaction closing conditions being met.
Gordon Birrell, bp’s executive vice president, production and operations, said, “Namibia is a region attracting growing industry interest and has a number of exciting frontier basins. This agreement marks bp’s entry into the country as an operator, strengthens bp’s exploration portfolio and provides long-term growth potential. We look forward to supporting the country in developing its resources.”
bp announced two exploration discoveries since the beginning of the year, following 12 discoveries in 2025, further strengthening its exploration portfolio in support of long-term organic growth. Since the beginning of 2025, Azule Energy – a 50:50 joint venture between bp and Eni – has announced four hydrocarbon discoveries: the Algaita-01 well and Gajajeira-01 gas find in Angola and the Volans-1X and Capricornus-1X discoveries in Namibia’s Orange Basin.
Other majors such as TotalEnergies and Galp are already deeply invested in significant projects in the Namibian deep waters. They pledged long-term commitment to the country during a recent meeting with the President Netumbo Nandi-Ndaitwah.
With TotalEnergies acquiring operatorship of Petroleum Exploration License (PEL) 83 while Galp stepping into PEL 56 and PEL 91, the partners have expressed high hopes from Namibia's production generation capacity. This confidence builds on past results from the licenses, namely the Mopane and Venus discoveries, which brought the Orange Basin international-scale success.
Page 2 of 124
