As Malaysia’s oil and gas (O&G) sector matures, a pressing challenge looms on the horizon: the safe and sustainable decommissioning of aging offshore infrastructure. Nearly half of the country’s offshore platforms are now operating at or beyond their original design life, posing significant safety, environmental, and financial risks.

A Rising Concern: Aging Infrastructure and Environmental Hazards

Malaysia’s offshore oil and gas assets have been instrumental in powering the nation’s economy for decades. However, time has taken its toll.

“Approximately 50% of offshore platforms in Malaysia are operating at or beyond their original design life.”

This aging infrastructure carries increased risks of oil spills, structural failures, and greenhouse gas emissions—particularly methane, which has a far greater impact on global warming than carbon dioxide.

“Abandoned oil and gas infrastructure has become one of the largest sources of methane emissions globally, surpassing the national emissions of some countries.”
— Datuk Ir. Abdul Razak, Chairman, Tenaga Nasional Berhad

Unlocking New Opportunities in the Energy Sector

While decommissioning is often seen as a costly liability, it also presents a new horizon for innovation, sustainability, and economic diversification:

• Renewable Energy Integration: Decommissioned platforms can be repurposed as foundations for offshore wind or solar installations. This reduces the cost of renewable deployment and accelerates Malaysia’s transition to clean energy.
• Circular Economy Initiatives: Materials from decommissioned platforms can be recycled or repurposed, fostering a circular economy that limits waste and enhances resource efficiency.
• Advanced Decommissioning Technologies: The use of robotics, artificial intelligence (AI), and automation can improve the safety, efficiency, and environmental impact of decommissioning operations.

Telcos as Enablers in the Decommissioning Ecosystem

Telecommunications companies have a critical role to play in supporting this national transition through digital infrastructure:

• IoT and Sensor Deployment: Real-time monitoring of decommissioned sites using IoT sensors ensures environmental compliance and safety oversight.
• AI and Data Analytics: Telcos can offer predictive maintenance, operational optimization, and data-driven decision-making tools to energy players.
• Blockchain for Transparency: Secure, immutable records of decommissioning activities build public trust and streamline regulatory reporting.

Strategic Engagements for CelcomDigi

CelcomDigi has a timely opportunity to form strategic alliances with key players in the Malaysian energy sector. Target partners include:

1. PETROS: Collaborate on digital solutions that align with Sarawak’s safe asset abandonment and future carbon capture and storage (CCS) readiness.
2. Sapura Energy: Support well-plugging and abandonment (P&A) initiatives by integrating advanced digital and engineering technologies.
3. MISC Berhad: Enhance offshore logistics for decommissioning, facilitating transitions to renewable uses such as reefing or offshore wind.
4. PETRONAS: Contribute to large-scale decommissioning programs through AI, big data, and tech-enabled platform repurposing strategies.
5. Uzma Berhad: Enable AI-driven asset integrity tools and innovative abandonment technologies to meet national decommissioning goals.

Ideal contact points include CIOs, COOs, and Heads of Digital Transformation or Innovation.

Lessons from Norway: A Global Benchmark

Malaysia can take inspiration from Norway’s offshore transition. Norway successfully repurposed 12 retired oil platforms into wind turbine bases, cutting decommissioning costs while slashing emissions.

• Annual CO₂ Reduction: 200,000 tons
• Economic Reinvestment: $1.2 billion redirected to coastal community development

A Collaborative National Effort

To manage decommissioning effectively, a coordinated approach is essential:

Energy Companies Should:

• Use eco-friendly decommissioning practices, including turning platforms into artificial reefs.
• Invest in AI, robotics, and advanced tech for safer, more efficient asset retirement.

The Government Can:

• Introduce tax incentives for sustainable decommissioning.
• Fund R&D initiatives focused on technological innovation in platform removal and repurposing.

Malaysia’s Success Story: PETRONAS-UMT Coral Reef Revival

In a milestone project, PETRONAS partnered with Universiti Malaysia Terengganu (UMT) in 2024 to convert three retired offshore platforms into artificial reefs.

• Cost Savings: 80% reduction compared to full platform removal
• Ecological Impact: 45% increase in fish populations within just six months