KUALA LUMPUR (Dec 26): Southeast Asia’s combined oil and gas production output in 2021 fell to below 5 million barrels of oil equivalent per day (boepd) for the first time since 1998.

According to Norway-based independent energy research and business intelligence company Rystad Energy's "Covid-19 report" released Dec 17, this level is not likely to be exceeded again in future, despite new project start-ups in coming years.

The firm said producers have struggled to recoup production losses triggered by the pandemic, as operators slowed down activity levels amid an unprecedented disruption in oil markets.

It said the decline is projected to continue into the middle of the decade.

Rystad said although volumes will remain stable in 2022, production will drop an additional 10% by 2025 to around 4.3 million boepd versus current levels.

Meanwhile, it said Southeast Asia is unlikely to see a substantial increase in spending in 2022, with investments projected to be in the range of US$15 billion to US$20 billion across the year.

It said investments will likely be driven by increased drilling activity in mature blocks in Indonesia and Thailand, as national oil companies take the reins and focus on top-producing blocks.