Register      Login
The APPEA Journal The APPEA Journal Society
Journal of the Australian Petroleum Production & Exploration Association (APPEA)
RESEARCH ARTICLE

Exploring the Thai and Malaysian decommissioning landscapes – identifying opportunities and challenges for Australia

Aaron Tung A *
+ Author Affiliations
- Author Affiliations

A Curtin University Oil & Gas Innovation Centre, Curtin University, Kent Street, Bentley, WA 6102, Australia.

* Correspondence to: aaron506193@hotmail.com

The APPEA Journal 62(1) 159-171 https://doi.org/10.1071/AJ21021
Submitted: 30 December 2021  Accepted: 21 January 2022   Published: 13 May 2022

© 2022 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.

Abstract

Due to their various economic, environmental and socio-political impacts, oil and gas decommissioning activities attract a wide array of stakeholders, including joint-venture partners, contractors, governments, environmental non-for-profit organisations, academic institutions, recreational anglers and many others. As the first wave of oil and gas decommissioning activities dawns upon the Asia-Pacific region, stakeholder impacts have begun to take shape in the form of regulatory disputes, scope changes, schedule delays and safety incidents. As part of a wider research to enhance project managers’ understanding of stakeholder impacts on oil and gas decommissioning projects in Australia, the South-East Asian landscape was explored in order to identify and highlight any challenges and opportunities that could be relevant to supporting the development of the Australian oil and gas decommissioning industry. The study finds that while nations in South-East Asia are of close proximity to each other and can easily rely on one another for resource sharing, Australia appears to be geographically isolated 'down under'. In addition, Australia currently has various legislative and regulatory barriers that limit access to readily available oil and gas decommissioning yards, facilities and resources across South-East Asia. This article will review these opportunities and challenges to recommend possible ways forward for the Australian oil and gas decommissioning industry.

Keywords: Asia-Pacific, decommissioning, environmental management, governance, international relations, ocean management, oil & gas, regulatory law.

Aaron Tung is a joint PhD graduate from the University of Aberdeen and Curtin University under the prestigious Aberdeen-Curtin Alliance programme. Aaron’s research lies in the field of oil and gas decommissioning and focuses on the creation of stakeholder-orientated critical paths for offshore decommissioning projects in the United Kingdom and Australia in order to guide the management of future decommissioning projects. Aaron also has a Bachelor degree in Petroleum Engineering from Curtin University.


References

Akbar A, Nasahie M, Abdul KM, Rusli H (2019) Decommissioning: Turning Challenges into Opportunities, through the Eyes of the Regulators. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |

Azahari I (2021) ‘Spearheading Brunei’s Economic Development. Borneo Bulletin.’ Press release, 29 June 2021. Available at https://borneobulletin.com.bn/spearheading-bruneis-economic-development/

Beckstead, D (2018). Lessons from Thailand on the Importance of Devising and Implementing Detailed Decommissioning Regimes. Oil, Gas & Energy Law Journal (OGEL) 16, .

Beringer, C, Jonas, D, and Kock, A (2013). Behavior of Internal Stakeholders in Project Portfolio Management and Its Impact on Success. International Journal of Project Management 31, 830–846.
Behavior of Internal Stakeholders in Project Portfolio Management and Its Impact on Success.Crossref | GoogleScholarGoogle Scholar |

Bertsimas, D, Darnell, C, Soucy, R, and Skaf, M (1999). Portfolio Management in an Upstream Oil and Gas Organization. Interfaces 29, 84–104.
Portfolio Management in an Upstream Oil and Gas Organization.Crossref | GoogleScholarGoogle Scholar |

Blichfeldt, BS, and Eskerod, P (2008). Project Portfolio Management – There’s More to It Than What Management Enacts. International Journal of Project Management 26, 357–365.
Project Portfolio Management – There’s More to It Than What Management Enacts.Crossref | GoogleScholarGoogle Scholar |

Bourne C (2020) ‘Sound and Constraint: Bangkok Is Ringing: Sound, Protest, and Constraint, by Benjamin Tausig.’ (Oxford University Press: Oxford)

Carragher P, Fulks J (2018) Well abandonment solutions utilizing bismuth and thermite. Paper presented at the Abu Dhabi International Petroleum Exhibition & Conference, Abu Dhabi, 12 November 2018. Paper no. SPE-193118-MS.
| Crossref |.

Chaiyasit, N, Kositanont, C, Yeh, S, Gallup, D, and Young, L (2010). Decontamination of Mercury Contaminated Steel (Api 5l-X52) Using Iodine and Iodide Lixiviant. Modern Applied Science 4, 12.

Chandler, J, White, D, Techera, EJ, Gourvenec, S, and Draper, S (2017). Engineering and Legal Considerations for Decommissioning of Offshore Oil and Gas Infrastructure in Australia. Ocean Engineering 131, 338–347.
Engineering and Legal Considerations for Decommissioning of Offshore Oil and Gas Infrastructure in Australia.Crossref | GoogleScholarGoogle Scholar |

CODA (2021) ‘A Baseline Assessment of Australia’s Offshore Oil and Gas Liability.’ (Centre of Decommissioning Australia)

Evans D (2020) Chevron Seeks Bids for Huge Thai Decommissioning Wave. Press release, 20 October 2020. Available at https://www.energyvoice.com/oilandgas/asia/decom-asia/273121/chevron-bids-thailand-decommissioning-wave/

Fairfield Energy (2018) Dunlin Alpha Decommissioning Programme. Offshore Petroleum Regulator for Environment and Decommissioning (OPRED). Available at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/731645/Dunlin_Alpha_Decommissioning_Programme.pdf

Fam, ML, Konovessis, D, Ong, LS, and Tan, HK (2018). A Review of Offshore Decommissioning Regulations in Five Countries–Strengths and Weaknesses. Ocean Engineering 160, 244–263.
A Review of Offshore Decommissioning Regulations in Five Countries–Strengths and Weaknesses.Crossref | GoogleScholarGoogle Scholar |

Genter S (2019) Stakeholder Engagement in the Decommissioning Process. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |

Gordon G, Paterson P, Usenmez E (2018) ‘UK Oil and Gas Law: Current Issues and Emerging Trends: Volume I: Research Management and Regulatory Law.’ (Edinburgh University Press: Edinburgh)

Hamzah, BA (2003). International Rules on Decommissioning of Offshore Installations: Some Observations. Marine Policy 27, 339–348.
International Rules on Decommissioning of Offshore Installations: Some Observations.Crossref | GoogleScholarGoogle Scholar |

Hewison, K (2014). Thailand: The Lessons of Protest. Asian Studies: Journal of Critical Perspectives on Asia 50, 1–15.

Ho CY (2018) Malaysia’s First Subsea Fields Abandonment. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 30 November 2018’. (Society of Petroleum Engineers)
| Crossref |

Huong T (2021) ‘Opportunities Abound for Oil and Gas Service Providers.’ Press release, 9 Jan 2021. Available at https://www.thestar.com.my/business/business-news/2021/01/09/opportunities-abound-for-oil-and-gas-service-providers

IOGP (2017a) ‘Overview of International Offshore Decommissioning Regulations – Volume 1: Facilities.’ (The International Association of Oil and Gas Producers)

IOGP (2017b) ‘Overview of International Offshore Decommissioning Regulations – Volume 2: Wells Plugging & Abandonment.’ (The International Association of Oil and Gas Producers)

Jagerroos S, Kayleigh H (2019) Emerging Decommissioning Trends in South East Asia: Local Interpretation and Implementation of Recently Updated Legislative Framework and Guidelines. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |

Laister S, Jagerroos S (2018) Different Routes-Same Destination: Planning Processes for Decommissioning in South East Asia. In ‘SPE Symposium: Decommissioning and Abandonment, 3 December 2018’. (Society of Petroleum Engineers)
| Crossref |

Milne P (2021a) New Sinbad Platform Video Highlights Decomm Dangers. Press release, 2 August 2021. Available at https://www.boilingcold.com.au/newsletter/new-sinbad-platform-video-highlights-decomm-dangers/

Milne P (2021b) Woodside Abandons Plan to Dump Derelict Structure in Ningaloo and Call it an Artificial Reef. Press release, 7 October 2021. Available at https://www.watoday.com.au/national/western-australia/woodside-abandons-plan-to-dump-derelict-structure-in-ningaloo-and-call-it-an-artificial-reef-20211007-p58y7j.html

Moffat, K, and Zhang, A (2014). The Paths to Social Licence to Operate: An Integrative Model Explaining Community Acceptance of Mining. Resources Policy 39, 61–70.
The Paths to Social Licence to Operate: An Integrative Model Explaining Community Acceptance of Mining.Crossref | GoogleScholarGoogle Scholar |

Moo HS (2014) ‘Waste Management Framework for Decommissioning of Offshore Installations in Malaysia.’ (Department of Civil Engineering, Universiti Teknologi PETRONAS: Malaysia)

Murphy, C, and Higgins, SA (2021). Australia offshore well inventory characterisation and decommissioning cost saving opportunities through cap rock restoration and rigless/riserless techniques. The APPEA Journal 61, 445–449.
Australia offshore well inventory characterisation and decommissioning cost saving opportunities through cap rock restoration and rigless/riserless techniques.Crossref | GoogleScholarGoogle Scholar |

Na, KL, Lee, HE, Liew, MS, and Zawawi, NAWA (2017). An Expert Knowledge Based Decommissioning Alternative Selection System for Fixed Oil and Gas Assets in the South China Sea. Ocean Engineering 130, 645–658.
An Expert Knowledge Based Decommissioning Alternative Selection System for Fixed Oil and Gas Assets in the South China Sea.Crossref | GoogleScholarGoogle Scholar |

NOPSEMA (2022) ‘NOPSEMA Consultation and Public Comment Space.’ (National Offshore Petroleum Safety and Environmental Management Authority: Australia). Available at https://info.nopsema.gov.au/

OGUK (2019) ‘Decommissioning Insight Report 2019.’ (Oil & Gas UK: United Kingdom)

OPRED (2022) ‘Decommissioning of Offshore Oil and Gas Installations and Pipelines’. Offshore Petroleum Regulator for Environment and Decommissioning (OPRED). Available at https://www.gov.uk/guidance/oil-and-gas-decommissioning-of-offshore-installations-and-pipelines

Othman M, Omar S, Zain M (2019) Alternative Way of Decommissioning Offshore Facilities to Achieve Lower Cost. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)

Owen, DA (2009). Voter Turnout in Thai Elections: An Analysis of the 2005 Thai National Election. Asian Politics & Policy 1, 307–324.
Voter Turnout in Thai Elections: An Analysis of the 2005 Thai National Election.Crossref | GoogleScholarGoogle Scholar |

PETRONAS (2020) ‘Petronas Procedures and Guidelines for Upstream Activities (PPGUA) Version 4.1.’ (Malaysia Petroleum Management (MPM): Malaysia)

PTTEP (2018) ‘PTT Public Company Limited 2018 Business Overview & Update.’ Press release, 27 March 2018. Available at https://energy.go.th/2015/wp-content/uploads/2018/03/S3_9_PTT-Oil-NF-G-Forum_.pdf

Rodprom P, Chatwit P (2018) Plug and Abandonment Technology and Efficiency Improvement for Asset Retirement in Gulf of Thailand. In 'SPE Symposium: Decommissioning and Abandonment, 3–4 December 2018, Kuala Lumpur, Malaysia'. (Society of Petroleum Engineers)

Rusman L, Foong BHW, Hamid M, Wong KY, Maluan L, Abdussalam K, Kamis A (2019) Abandonment Roadmap from Operator’s Perspective. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |

Sanchez, H, Robert, B, Bourgault, M, and Pellerin, R (2009). Risk Management Applied to Projects, Programs, and Portfolios. International Journal of Managing Projects in Business , .
Risk Management Applied to Projects, Programs, and Portfolios.Crossref | GoogleScholarGoogle Scholar |

Saunders M, Lewis P, Thornhill A (2016) ‘Research Methods for Business Students.’ (Person: Harlow, England)

Silakorn P, Chanvanichskul C, Siangproh W, Chailapakul O, Boonyongmaneerat Y (2019) Alternative Method for Mercury Detection Using Square Wave Anodic Striping Voltammetry. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |

Sirirattanachatchawan T, Pattarachupong W, Wiwatanapataphee W, Tankul C, Choodesh A, Direkmahamongkol S, Charoensil T (2019) Successful P&A Cement Bullhead Jobs across the High Temperature and Long Perforation Interval Wells in the Gulf of Thailand. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |

Sommer, B, Fowler, AM, Macreadie, P, Palandro, D, Aziz, AC, and Booth, DJ (2019). Decommissioning of Offshore Oil and Gas Structures – Environmental Opportunities and Challenges. Science of The Total Environment 658, 973–981.
Decommissioning of Offshore Oil and Gas Structures – Environmental Opportunities and Challenges.Crossref | GoogleScholarGoogle Scholar |

Tanakasempipat P (2019) ‘Thai Energy Ministry Sets March Target to Resolve Chevron Dispute.’ Press release, 8 October 2019. Available at https://www.reuters.com/article/us-thailand-chevron-idUSKBN1WN1IZ

Thiyahuddin M, Izzat M, Ithnin G, Ismail S, Zhafran M, Ikhranizam M, Redzuan M (2019) Automated Marine Biomass Recognition in Uncontrolled Underwater Environment for Marine Biomass Evaluations in Decommissioning Options Assessment. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |

Tularak A, Khan WA, Thungsuntonkhun W (2007) Decommissioning Challenges in Thailand. In ‘SPE Asia Pacific Health, Safety, and Security Environment Conference and Exhibition, Bangkok, Thailand, 1 January 2007’. (Society of Petroleum Engineers)
| Crossref |

Tung A (2020a) A Comparison of Stakeholder Engagement Strategies for Offshore Decommissioning Projects in the United Kingdom and Australian Landscape. In ‘Offshore Technology Conference, Houston, Texas, USA, 4 May 2020’. (Offshore Technology Conference)
| Crossref |

Tung A (2020b) Design and Analysis of Stakeholder Oriented Critical Paths for Offshore Decommissioning Projects in the United Kingdom and Australian Landscape Using Mixed Methods In ‘Offshore Technology Conference, Houston, Texas, USA, 4 May 2020’. (Offshore Technology Conference)
| Crossref |

Tung A (2021a) ‘An Exploration of Stakeholder Impacts on the Decommissioning of Offshore Oil and Gas Facilities – The Design, Development, and Analysis of Stakeholder Oriented Critical Paths for United Kingdom and Australia.’ (Curtin University: Australia)

Tung, A (2021b). Co-creation of knowledge–an effective mechanism for managing decommissioning stakeholders. The APPEA Journal 61, 48–57.
Co-creation of knowledge–an effective mechanism for managing decommissioning stakeholders.Crossref | GoogleScholarGoogle Scholar |

Tung A, Otto C (2019) Lessons Learnt from OSPAR and the North Sea: The Importance of Establishing a Regional Decommissioning Agreement in the South China Sea Region. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |

Vrålstad, T, Saasen, A, Fjær, E, Øia, T, Ytrehus, J, and Khalifeh, M (2019). Plug & Abandonment of Offshore Wells: Ensuring Long-Term Well Integrity and Cost-Efficiency. Journal of Petroleum Science and Engineering 173, 478–491.
Plug & Abandonment of Offshore Wells: Ensuring Long-Term Well Integrity and Cost-Efficiency.Crossref | GoogleScholarGoogle Scholar |

Vuttipittayamongkol P, Tung A, Elyan E (2021a) Towards Machine Learning-Driven Practices for Oil and Gas Decommissioning–Introduction of a New Offshore Pipeline Dataset. In ‘The 2021 9th International Conference on Computer and Communications Management, Singapore, 16 July 2021’. (Association of Computing Machinery)

Vuttipittayamongkol, P, Tung, A, and Elyan, E (2021b). A Data-Driven Decision Support Tool for Offshore Oil and Gas Decommissioning. IEEE Access 9, 137063–137082.
A Data-Driven Decision Support Tool for Offshore Oil and Gas Decommissioning.Crossref | GoogleScholarGoogle Scholar |

Whittaker P, Oudenot E, Vasquez M (2019) ‘Oil and Gas Needs Decommissioning Models That Work at Scale.’ Press release, 14 August 2019. Available at https://www.bcg.com/en-au/publications/2019/oil-gas-decommissioning-models-work-at-scale.aspx

Wideman R (2004) ‘A Management Framework: For Project, Program and Portfolio Integration.’ (Trafford Publishing: United Kingdom)

Wiratno J (2020) ‘Challenge & Opportunity of Platform Decommissioning In Indonesian Oil & Gas Upstream Business. SKK Migas Weekly Report – Week 4 – April 2020.’ Press release, 24 April 2020. Available at https://kkp.go.id/an-component/media/upload-gambar-pendukung/DitJaskel/publikasi-materi-2/marine-energy/Challenge%20%20Opportunity%20Platform%20Decommissioning%20-%20Julius%20Wiratno%20-%20Deputy%20Operation%20of%20SKK%20Migas.pdf

Wood Mackenzie (2018) ‘Offshore Decommissioning in Asia Pacific could cost US$100 billion’. Press release, 1 February 2018. Available at https://www.woodmac.com/press-releases/asia-decom/

Yap T (2018) Planning & Execution of Field 1 Subsea Facilities Decommissioning. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 30 November 2018’. (Society of Petroleum Engineers)
| Crossref |

Yin S (2017) Chevron Decommissioning Project - Gulf of Thailand - 2017. In ‘Offshore Decommissioning Conference, St. Andrews, Scotland, United Kingdom, 22 November 2018’. (Offshore Decommissioning Conference)

Zawawi N, Liew MS, Na KL (2012) Decommissioning of Offshore Platform: A Sustainable Framework. In ‘2012 IEEE Colloquium on Humanities, Science and Engineering (CHUSER), 2012’: IEEE.

Zawawi N, Liew MS, Alaloul WS, Shawn LE, Imran M, Toloue I (2019a) ‘Non-Destructive Testing Techniques for Offshore Underwater Decommissioning Projects through Cutting Detection: A State of Review.’ In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers) https://doi.org/10.2118/199191-MS

Zawawi N, Liew, Shawn LE, Alaloul WS, Toloue I, Mohd MH, Rahman M (2019b) Potential of Offshore Structure as Artificial Reefs in Shallow Tropical Water. In SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers) https://doi.org/10.2118/199190-MS

Zulkipli S, Saw LJ (2019) Knowledge and Experiences Combined under One Hood: Lessons Learned from Peninsular Malaysia Well Abandonment Campaign. In ‘SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, 2 December 2019’. (Society of Petroleum Engineers)
| Crossref |