Southeast Asia’s upstream merger and acquisition (M&A) landscape is undergoing a significant transformation, with $9.6b in assets available for acquisition through 2027, according to Rystad Energy. This marks a shift from the previous focus on international oil companies exiting the region to new strategic entries by various players.
The assets, valued at $9.6b, are divided among energy majors, independents, and national oil companies (NOCs). Energy majors are selling $3.6b worth of assets, whilst independents and NOCs account for $3.7b and $1.4b, respectively. The shift is driven by majors focusing on core basins and independents needing capital for pre-final investment decision (FID) discoveries.
Prateek Pandey, Head of APAC Oil & Gas Research at Rystad Energy, highlighted the region’s growth potential, stating, “The next 18 months will be shaped by the conversion of pre-FID opportunities into mega M&A deals, the trajectory of premiums on producing assets, and the continued evolution of deal structures into strategic partnerships.”
The opportunities span 45 production sharing contracts (PSCs) across 12 provinces, with 2.8 billion barrels of oil equivalent (boe) in net resources. Notable areas include Sarawak, the Andaman Sea, and the Kutei Basin, which hold significant pre-FID gas positions. Vietnam’s Ken Bau field, with 3.7 trillion cubic feet of recoverable resources, is the largest resource on offer.
As the market evolves, Chevron’s retreat from the region highlights opportunities for NOCs like Petronas and Pertamina to expand their domestic portfolios. However, challenges remain, as seen with Eni’s Vietnamese portfolio facing commercial pressures, potentially leading to farm-outs rather than direct sales.
