Ageing oilfields to boost demand for water treatment technologies in South East Asia, report says

An increasing number of old oilfields in South East Asia could boost the demand for cost-effective water treatment technologies, according to the analysis report ‘Produced Water Treatment Market in South East Asia’ by Frost & Sullivan.

Oilfields in operation for 20 to 30 years with water cuts of 80% to 90%, which is the ratio of water to the overall volume of produced liquids, necessitates produced water treatment technologies in the region, the analysis revealed.

With growing demand for such technologies, the revenue from produced water treatment technologies could reach $357.7m in 2018, rising from $275m in 2013.

However, costs and complexities regarding produced water treatment have affected its adoption in the market, with suppliers engaging in further research and development to find simpler and more economic alternatives.

Frost & Sullivan energy and environmental research associate Harpreet Kaur said: "There is a need for oilfield operators to reach out to suppliers and manufacturers to arrive at more viable and cost-effective methods of produced water treatment and reuse/recycling.

"This could eventually create a platform for new technologies to be launched and improved upon."

Government regulations and the drive for profit by oil and gas regulators also affect the South East Asian market, the report showed.

Kaur added: "Meanwhile, governments across South East Asia are attracting more investments to the oil and gas industry through incentives for exploration and extraction.

"The greater volumes of oil production will cause a concurrent rise in produced water generation, giving a fillip to the overall market."

The regulations drive the suppliers to find alternate treatment technologies and water conservation initiatives, which fuel produced water treatment demand in the region.