The keynote article for this issue, written by Stewart Maxwell, Technical Director at Aquaterra Energy, outlines the tightrope that the Asia-Pacific (APAC) region is walking as it attempts to balance growth with decarbonisation. APAC is experiencing surging energy demand, while being one of the world’s biggest carbon emitting regions (APAC will account for 50% of global energy demand, and 60% of emissions, by 2050).1 The challenge for APAC nations is to meet increasing demand while staying on track with global decarbonisation goals, and it’s a diverse region, so there is no ‘one size fits all’ solution. All of this means it has become an interesting testing ground for innovative, tailored solutions.
Maxwell writes that, as energy demand continues to rise across APAC, upstream investment is surging to keep pace. The region is expected to invest an estimated US$3.3 trillion into power generation over the next decade, with oil and gas maintaining a vital share of the mix, particularly in China, India, and Southeast Asia (where LNG demand is booming). But with the most accessible reserves already tapped, operators must work on unlocking smaller, and geographically challenging fields. Increasingly, in place of traditional infrastructure for E&P projects, there is growing reliance on fit-for-purpose, modular technologies designed to unlock value from previously uneconomic assets. These include conductor-supported platforms like Sea Swift (from Aquaterra), which can be installed directly from jack-up rigs.
Subsea drilling from jack-up rigs, a technique well established in other regions, is beginning to gain traction in markets such as China and Japan. It offers access to shallow-water and near-shore resources without extensive subsea infrastructure, helping to minimise environmental impact. Bohai Bay, China’s largest offshore oil-producing area, has shallow waters comparable in scale to the North Sea. Conventional semi-submersible platforms are not practical here, so modular solutions come into their own. By embracing smarter and smaller scale technologies, APAC operators are rethinking how offshore development can be more economically viable in the decade ahead.
Carbon capture and storage (CCS) is often billed as a secret weapon when it comes to decarbonising legacy assets and future-proofing infrastructure. Since 2000, emissions in APAC have risen by 151%, and one of the most promising ways to address this lies in repurposing the region’s ageing oil and gas fields.2 With over 200 offshore fields in Southeast Asia expected to cease production by 2030, these assets represent a ready-made opportunity for CCS deployment.
In Malaysia, Petronas and ExxonMobil are collaborating to unlock the country’s substantial 46 trillion ft3 of potential CO2 storage capacity in depleted offshore gas reservoirs. Indonesia has approved a series of CCS projects involving bp, INPEX, and Repsol. Yet while the commercial and regulatory groundwork for CCS is advancing, technical challenges remain, particularly around legacy well integrity. Read the full keynote article (p. 5) to find out how repurposed wells might safely and securely store CO2 long term.
The region’s most successful projects are being shaped through strategic collaboration, with a growing wave of JVs and long-term partnerships. Petronas is leading the charge, teaming up with Eni to form a Southeast Asian energy major, working with Woodside on long-term LNG supply deals, collaborating with Baker Hughes, and joining forces with TotalEnergies to invest in regional renewables. APAC’s energy transformation will depend on how effectively stakeholders can work together to build new infrastructure that is flexible and future-ready.
