Export opportunity – Malaysia offshore decommissioning

Malaysia – offshore decommissioning opportunity summary 

Offshore decommissioning in Malaysia has been a growing area of market interest over the last few years. Approximately 56% of the country's offshore assets are beyond design life. Of these, 18% have been operating for more than 40 years. 

Malaysia has more than 3000 wells, 45% of which have been identified as idle. The Malaysian oil and gas company Petronas has announced plans to permanently plug over 500 wells by 2030.  

Scale of export opportunity

There are short-term opportunities in both plugging and the removal of small and lightweight assets. 

The total value of Petronas' Malaysian decommissioning campaign is approximately £250 million. 

Company suitability

Scottish companies best positioned to win this type of business will fit with some of the following: 

• Companies with experience in drilling rigs and Hydraulic Workover Unit, offshore support vessels, lifting and third-party drilling services, engineering services, yard facility, transport, cutting services, conductor removal, pipeline flushing, and other similar areas
• Consultancy companies with experience in waste management or EIA
• Specialist companies involved in plugging and cutting (this is of particular interest to Petronas)
• Companies which are already trading internationally