Asia’s state heavyweights hold firm on upstream spending

With international oil prices at nearly two-decade lows, Asia’s oil and gas developers have begun to review their capex budgets as they strive to weather the downturn

International benchmark Brent crude sank as low as $21.65/bl in trading on 31 March, its lowest level in 18 years. However, while a growing number of independents and IOCs are slashing budgets, Asia’s NOCs are holding out to ensure the energy security of their respective countries. UK developer Premier Oil—which has operations in Pakistan, Singapore, Vietnam and Indonesia—has said it is looking to reduce capex for 2020 by $100mn. The cut, in conjunction with $35/bl oil, should allow the company to be “cash-flow neutral” this year. Indonesia’s Medco Energi has slashed its budget for this year by 30pc, to $240mn, “with potential for further 2021 reductions”. At the same time, Indonesia’s eight