Southeast Asia to dominate global deepwater gas activity with $25bn spend

Southeast Asia to dominate global deepwater gas activity with $25bn spend

Southeast Asia will lead other regions in having the largest share of new deepwater gas and condensate developments taking a final investment decision (FID) between 2022 and 2025, research from Rystad Energy shows. Significantly, around $25 billion is expected to be spent on greenfield deepwater developments in the region from 2021-2025, up from $2 billion over the prior five-year term.

“Nearly 5 billion barrels of oil equivalent (boe) will be sanctioned in Southeast Asia out of a total 22 billion boe globally in the coming four years. Of the 20 or so deepwater projects expected to reach FID through 2025, the top three will be offshore Malaysia, Indonesia, and Vietnam with other developments set to be sanctioned in Thailand, Myanmar, and Brunei,” Rystad said in a report.

“Of Southeast Asia’s total, Indonesia will be responsible for around 60% of these resources followed by Malaysia, Myanmar, Vietnam, and Brunei. A total of over 20 deepwater projects are due for sanctioning by 2025. The top three deepwater projects responsible for nearly 70% of these resources include Chevron’s IDD project in Indonesia, Inpex’s Abadi project in Indonesia and ExxonMobil’s Blue Whale project in Vietnam,” reported the energy consultancy.