The dynamics of upstream mergers and acquisitions (M&A) in Southeast Asia are shifting from large international oil companies (IOCs) exiting the region to new players entering through strategic acquisitions. Rystad Energy’s research highlights a robust competitive landscape, with an anticipated $9.6 billion worth of upstream assets available until 2027. This marks a transition from the 2020-2024 period, where IOCs typically sold off less profitable assets.
Key findings include:
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Asset Distribution: The $9.6 billion asset pool comprises $3.6 billion from energy majors, $3.7 billion from independents, and $1.4 billion from national oil companies (NOCs).
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Market Trends: Recent transactions show increased valuation metrics, with development assets fetching around $9.8 per barrel of oil equivalent (boe)—significantly higher than the six-year average.
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Types of Players:
- Majors: Focus on core basins and new frontier partnerships.
- Independents: In need of capital for pre-FID projects like Harbor Energy’s Andaman portfolio.
- NOCs: Selective in divestments, focusing on optimizing domestic portfolios while exploring international opportunities.
Looking ahead, the growth ambition in Southeast Asia is evident, with a focus on converting pre-FID projects into major deals. The competitive landscape emphasizes the need for solid value creation plans alongside capital investment.
For additional insights, refer to Rystad Energy’s resources on the oil and gas sector.
