Southeast Asia evolves into an NOC universe

The trend for the region’s operators to play a bigger role looks set to continue

NOCs have grown in influence in Southeast Asia, evolving from their role as regulatory bodies for upstream activities to being key operators and partners in the region’s largest fields. And this trend will continue and could even accelerate in 2021. NOCs have increased their control through a shift from a concessionary system to production-sharing contracts (PSCs). But they have also pursued M&A to increase their participation in the region’s development and production projects. Their shares in both regional investment and output have risen steadily—from 35pc and 30pc in 2000, respectively, to current 50pc stakes. In absolute terms, regional NOCs’ production grew by 30pc from 2.4mn bl/d