Reservoir Link to bid for more PETRONAS jobs

KUCHING: Oil and gas services provider Reservoir Link Energy Bhd (RLEB) is eyeing high-value contracts from Petroliam Nasional Bhd’s (PETRONAS) decommissioning plans for ageing offshore facilities.

According to the Petronas Activity Outlook 2025 to 2027, approximately 153 wells from 37 offshore facilities and one onshore facility of the Sarawak-Sabah Gas Pipeline section running through Lawas, Limbang, Miri and Bintulu are slated for decommissioning after the end of their productive operations.

The offshore facilities include wellhead platforms, central processing platforms, subsea facilities, floaters and pipelines. The decommissioning involves permanently closing the wells and removal of assets as approved by PETRONAS.

The upcoming wave of plug and abandonment and decommissioning activity presents a compelling growth avenue and offers a robust pipeline of opportunities through 2026 and beyond, said RLEB chairman Datuk Tai Hee.

“The group’s established capabilities align directly with the scope of these projects. Through strategic partnerships, we are further enhancing our competitive edge in securing and executing these high-value contracts,” he added in the company’s annual report for this year.

With an increasing number of offshore assets approaching end-of-life, the demand for safe and cost-efficient decommissioning and plug and abandonment solutions is set to grow, the company’s management said.

“Reservoir Link plays a crucial role in safeguarding the environment through our comprehensive decommissioning and well-abandonment services.

“We are committed to carrying out these activities with the highest levels of safety, strict compliance with environmental regulations, and a clear focus on sustainability.

“Leveraging our proven capabilities and niche technologies, we are well-prepared to support operators in responsibly retiring ageing infrastructure while maintaining operational excellence,” the company said.

RLEB was awarded an umbrella contract under the PETRONAS integrated well continuity services covering well intervention, workover and abandonment.

PETRONAS expects the plug and abandonment activity to increase, with the abandonment of 80 wells per year from 2028 onwards, as it addresses the increasing number of mothballed facilities and returns the sites to an environmentally stable condition.

It continues to explore innovative decommissioning solutions focusing on technologies, reuse/repurpose options, integrated multi-year execution approach for economies of scale as well as identifying potential alternatives that can introduce cost compression.

RLEB’s specialised well expertise encompasses well-leak repair, perforation and well testing, critical solutions that safequard well integrity and optimise production efficiency.

To further enhance outcomes, it deploys advanced technologies and innovative techniques, such as production enhancement, speciality chemical applications and sand management systems.

These solutions are tailored to rejuvenate ageing wells, extend their productive life and unlock greater value for clients.

Tai said in line with the group’s long-term growth, RLEB recently acquired a 30% stake in Propel Maxflo Sdn Bhd to strengthen its core capabilities and expand market presence.

Recently, RLEB signed a conditional share sale agreement with Propel Oilfield Services Sdn Bhd to acquire the remaining 70% stake in Propel Maxflo for RM17.24mil.

Propel Maxflo provides products and services for exploration, drilling and well intervention, enhanced oil recovery and production technologies specifically for offshore and onshore oil and gas refining.

RLEB said the acquisition not only enhances its ability to deliver comprehensive, integrated well services but also establishes a strategic platform to develop a regional hub for well solution, reinforcing its growth in one of the world’s most dynamic markets.

The acquisition not only deepens RLEB’s technical expertise but also expands the company’s reach into the Middle East Market, particularly Saudi Arabia and Bahrain.

“This acquisition complements our existing business portfolio and unlocks synergies across operations, technology and customer engagement, thereby reinforcing our competitive advantage across both domestic and regional markets,” said Tai.

RLEB also have plans to expand its renewable energy (RE) portfolio, and targets to deliver 100MW of sustainable renewable energy assets under management by 2027.

Beyond RE, Tai said RLEB has diversified into wastewater treatment. RLEB’s 85%-owned subsidiary PT EnvironTech AKva Indonesia now fully operates the wastewater treatment facility for PT Unilever Olechemical Indonesia under a 10-year agreement.

Last month, RLEB’s wholly owned subsidiary, RL Sigma Engineering Sdn Bhd, secured a RM60.2mil turnkey engineering, procurement, construction, and commissioning contract from Sage Promaster Sdn Bhd for a 15,000-tonne capacity waste recovery facility.