Fariz Aziz and Jeralyn Kan examine the decommissioning framework
in Malaysia, the United Kingdom and Australia.
INTRODUCTION
According to energy research and consultancy firm Wood
Mackenzie, nearly 2,600 platforms and 3,500 wells in more than 380
fields in Asia Pacific are expected to cease production in the next
decade. At home, our national oil company, Petroliam Nasional
Berhad ("PETRONAS") has also identified decommissioning
as a rapidly developing market sector in the oil and gas industry
with over 300 platforms in the country of which a considerable
number have been operating for more than 40 years.
This article seeks to examine the state of the current legal
framework for decommissioning of offshore oil and gas facilities in
Malaysia and contrasts it with the decommissioning practices in the
United Kingdom ("the UK") and Australia.
