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Over US$46.3 billion will be spent on Southeast Asia’s upstream capex by 2020

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LNG Industry,

An average capital expenditure (capex) of US$17.8 billion per year will be spent on 336 oil and gas fields in Southeast Asia between 2018 and 2020, according to GlobalData.

Capex on Southeast Asia’s traditional oil projects will add up to US$8.3 billion over the three-year period, while heavy oil fields will require US$1.7 billion over the same period. Investments into gas projects in Southeast Asia will total US$43.4 billion in upstream capex by 2020.

Jonathan Markham, Oil & Gas Analyst at GlobalData comments, “Shallow water projects will be responsible for over 63% of US$46.3bn of upstream capex in Southeast Asia, or US$31.1 billion by 2020. The onshore projects will be responsible for over 12% or US$5.8 billion, whereas deepwater and ultra-deepwater necessitate US$9.4 billion in capex over the period.”

Petroliam Nasional Berhad will lead Southeast Asia in capex, investing US$7.5 billion into the region’s upstream projects by 2020. PT Pertamina (Persero) and Chevron Corporation will follow with US$4.3bn and US$3.1 billion invested into Southeast Asia’s projects between 2018 and 2020.

Tangguh, a producing conventional gas field in Indonesia will lead capital investment with US$5.2 billion for the LNG Expansion Project, to be spent between 2018 and 2020. BP Berau Ltd. is the operator for the field. Block B Gas Development, a planned conventional gas field connected to power plants in Vietnam, follows with a capex of US$3 billion. Vietnam National Oil and Gas Group is the operator of the field.

Block H Gas Development Project, a planned conventional gas field feeding an FLNG vessel in Malaysia, will follow next with a capex of US$2.9 billion. Murphy Exploration & Production Company – International is the operator of the upstream part of the project. Among these three fields, two are shallow water and one is deepwater development.

GlobalData reports the average full cycle capex per barrel of oil equivalent (boe) for Southeast Asia projects at US$10.3. Ultra-deepwater projects have the lowest full cycle capex/boe at US$8.6, followed by onshore developments with US$9.7. Deepwater projects have the highest full cycle capex/boe at US$15.9.

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