Petroleum activity in the Far East during 1978 recorded some significant firsts and made some spectacular gains in selected areas. Peninsular Malaysia recorded the largest increase in production. The Philippines registered its first development as it readied the Nido complex for production. While activity in these areas was picking up steam, in other areas such as Bangladesh, Burma, and Afghanistan it continued at a slow pace. Indonesia, which accounts for more than 50% of the total Far East exploratory drilling began to rebound slowly from the doldrums of 1976 and 1977. Areas which recorded little or no petroleum activity were Kampuchea, South and North Korea, Sri Lanka, and the various small island republics within the Far East reporting region.

Approximately 310 exploratory wells were reported in those countries for which data were available, compared to 225 in 1977; of these, 47% were drilled in Indonesia. Exploratory wells drilled in 1978 resulted in discovery of approximately 40 oil fields and 26 gas fields or extensions. Discoveries were recorded in Indonesia, Thailand, Pakistan, Philippines, Malaysia, Brunei, Taiwan, and Japan. Other areas which had discoveries but do not report complete statistics are India, China, Afghanistan, and Burma.

Production during 1978 rose to approximately 4.3 million BOPD, a 2% increase. India, Peninsular Malaysia, and the People's Republic of China all registered significant gains to account for most of the increase. The largest percentage gain was in Peninsular Malaysia, which reported production of 19,735 BOPD compared to none in 1977.

The most significant discoveries during 1975 were in the Philippines and Peninsular Malaysia. No new discoveries of note were made in any of the major producing countries such as Indonesia, Brunei, or East Malaysia (Sabah-Sarawak).

During 1978 the Philippines continued to have great activity. Pakistan also registered an increase in foreign-contractor activity. In Vietnam, contract negotiations were concluded by several companies such as the Bow Valley group, and drilling plans moved ahead rapidly. On the negative side, the last active foreign contractor, Union Oil of Bangladesh, relinquished its petroleum rights in Bangladesh. Burma offered all of its offshore acreage for contract, but at year end had no takers. Likewise, in Sri Lanka no interest has been expressed in offshore blocks, and the last foreign petroleum rights holder, Ceyoil, relinquished all of its acreage.

Of special significance in 1978 was the fact that South Korea and Japan finalized the Joint Development Agreement clearing the way for work in the "joint development area" in the Korean Straits. At year end, South Korea and Japan were still selecting operators for the various blocks within the joint-development zone. With regard to other disputed areas, India and Thailand and Malaysia and Thailand were nearing resolution of boundaries at year end. No progress was made regarding Taiwan offshore rights or disputes among Vietnam, Thailand, Kampuchea, and Indonesia regarding international boundaries.