Southeast Asia's upstream M&A activity shifts
Published by Willow Munz,
Editorial Assistant
Oilfield Technology,
Southeast Asia's upstream merger and acquisition (M&A) conversation has moved from which international oil companies (IOCs) are leaving to who is buying their way in. Research from Rystad Energy shows a competitive cycle ahead, with US$9.6 billion in upstream assets on offer for the remainder of this year and 2027, as the region's deal market shifts from non-core exits to strategic entry.
Assets worth around US$6.7 billion changed hands under this new intent in 2025, a departure from 2020 - 2024, which was dominated by majors trimming late-life positions and production sharing contract (PSC) expirations. Transaction metrics have risen alongside the competition: recent deals have reached US$9.8 per barrel of oil equivalent (boe) for development assets and over US$3 per boe for pre-final investment decision (FID) resources, against six-year averages of US$6 - 7 per boe and US$1.5 per boe, respectively.
The US$9.6 billion is split almost evenly between energy majors (US$3.6 billion) and independents (US$3.7 billion), with national oil companies (NOCs) accounting for US$1.4 billion and a handful of smaller sellers making up the rest. What separates the groups is the growth ambition behind each sale. Majors are selling assets in countries with limited upside to focus on a few core basins, while entering frontier acreage instead through partnerships rather than carrying the risk alone. Independents, sitting on recent pre-FID discoveries such as Harbor Energy's Andaman portfolio, need capital beyond a single balance sheet to reach FID. NOCs are the most selective of the three, having built up domestic portfolios (such as Petronas through its Searah joint venture with Eni) which now gives them room to rationalise late-life assets at home while eyeing entry elsewhere.
"Growth is the common theme across nearly every portfolio in the region right now. The next 18 months will be shaped by three things: 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. For buyers, capital alone won't win the next round. The premium a bidder can justify will come down to the value creation plan behind the offer," said Prateek Pandey, Head of APAC Oil & Gas Research, Rystad Energy.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/06102026/southeast-asias-upstream-ma-activity-shifts/
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