Asian NOCs eye upstream build amid low oil prices

With oil prices low and forecast to remain that way, governments are looking to strengthen their hand through acquisitions

Lower oil prices are creating opportunities for bolder Asian national oil companies (NOCs) as they seek to reverse falling production over the next five years. Analysts expect the number of opportunistic asset deals to rise towards the end of the year, as international oil companies (IOCs) rationalise and more distressed sellers emerge. Individual deals are expected to be in the region of $1bn to $5bn. India’s Oil and Natural Gas Corporation (ONGC) and Thailand’s PTT Exploration & Production (PTTEP) are the most likely buyers, but China’s NOCs are also looking around. In early September, ONGC struck a deal with Rosneft to buy a 15% stake in Russia’s prolific Vankor oilfield with a price