Recent discoveries in Malaysia, Indonesia to trigger SE Asia offshore gas boom: Rystad Energy

KUALA LUMPUR: Offshore gas production in Southeast Asia is poised to unlock a US$100 billion (RM471 billion) potential, driven by a flurry of planned final investment decisions (FID) expected to materialise by 2028, according to Rystad Energy.

The global research and energy intelligence company said the upcoming period of rapid growth is bolstered by deepwater projects, recent successful discoveries in Malaysia and Indonesia, and a positive carbon capture and storage advancements.

“This represents a more than twofold increase over the US$45 billion worth of developments that reached FID from 2014 to 2023 and signals a surge for the region’s offshore gas industry,” it said in a statement.

Rystad Energy said oil and gas majors are expected to drive 25% of these planned investments through 2028, while national oil companies (NOC) will account for a 31% share.

“Notably, East Asia's upstream companies are emerging with a 15% share and show potential for growth through their focus on merger and acquisition opportunities and upcoming exploration ventures. “The role of majors could further expand to 27% following TotalEnergies' substantial acquisition efforts in Malaysia,” Rystad Energy said.

Earlier this year, it was reported that TotalEnergies had signed an agreement with OMV to acquire its 50% interest in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn Bhd for US$903 million, a move that will increase the French oil and gas major’s presence in the region.

“Recent discoveries and the involvement of NOC will play a vital role in the growth (of new project investments and capital commitments in the region), particularly in deepwater developments, which are pivotal in determining how much of this anticipated US$100 billion boom can be realised,” Rystad Energy vice president of upstream research Prateek Pandey said in the statement.

Indonesia stands out in its efforts to accelerate its offshore gas activities driven by major projects, making it a formidable contender for Malaysia's established dominance in the field.

Nevertheless, the research firm said, Malaysia continues to maintain robust activity levels with recent FID, exploration success and planned exploration efforts.

Malaysia's upcoming FID projects underscore significant discoveries made since 2020, primarily managed by national oil corporation Petroliam Nasional Bhd, commonly known as Petronas, Thailand’s national oil and gas company PTTEP and Shell. – Bernama