Italian offshore and onshore contracting giant Saipem has shut down its Kuala Lumpur, Malaysia office and is scaling back its support facilities in Indonesia after failing to secure significant contracts in Southeast Asia over the past five years.

Many Indonesian field development projects on Saipem’s hit-list to date have failed to get beyond the drawing board in the wake of the two most recent oil price crashes and fallout from the ongoing coronavirus pandemic.

It is understood the contractor will retain its fabrication facility on the Indonesian island of Karimun, some 30 kilometres from Singapore, although its Jakarta office will operate as a smaller satellite office of its new APAC and Middle East base in Abu Dhabi.