Key facts
- Southeast Asia's upstream oil and gas assets worth $9.6 billion will be offered for sale through 2027.
- Energy majors account for $3.6 billion of the assets, independents $3.7 billion, and national oil companies $1.4 billion.
- Recent deals for development assets have reached $9.8 per barrel of oil equivalent (boe), and over $3 per boe for pre-final investment decision (FID) resources.
- 72% of the resources on offer are in the pre-FID stage, with 18% producing.
- Vietnam's Ken Bau field, holding 3.7 trillion cubic feet (Tcf) of recoverable resources, is the largest single resource available.
- Chevron is offering its stake in the North Malay Basin, a significant producing gas block.
Southeast Asia's upstream oil and gas sector is poised for a significant merger and acquisition (M&A) cycle, with approximately $9.6 billion in assets expected to be offered for sale through 2027, according to research from Rystad Energy. This shift indicates a move from international oil companies divesting non-core assets to regional players making strategic entries.
Assets valued at around $6.7 billion were transacted in 2025 with this new strategic intent, a notable change from the 2020-2024 period dominated by majors trimming late-life positions and production sharing contract (PSC) expirations. Competition for these assets has driven up transaction metrics, with recent deals for development assets reaching $9.8 per barrel of oil equivalent (boe) and pre-final investment decision (FID) resources exceeding $3 per boe, compared to six-year averages of $6-7 per boe and $1.5 per boe, respectively.
The $9.6 billion in assets is divided among energy majors ($3.6 billion), independents ($3.7 billion), national oil companies (NOCs) ($1.4 billion), and smaller sellers. Majors are focusing on core basins and frontier acreage through partnerships, while independents seek capital for pre-FID discoveries. NOCs are the most selective, rationalizing late-life assets domestically while eyeing opportunities elsewhere.
Growth is a common theme across the region, with the next 18 months shaped by the conversion of pre-FID opportunities into mega M&A deals, the trajectory of premiums on producing assets, and the evolution of deal structures into strategic partnerships. Prateek Pandey, Head of APAC Oil & Gas Research at Rystad Energy, noted that capital alone won't win deals; the justification for a premium will depend on the value creation plan behind an offer.
The opportunities span nearly 45 PSCs across 12 provinces, holding 2.8 billion boe of net resources and about 145,000 barrels of oil equivalent per day (boepd) of production. However, 72% of these resources are in the pre-FID stage, with only 18% currently producing. Key pre-FID gas positions include Sarawak, the Andaman Sea, and the Kutei Basin. Vietnam's Ken Bau field, with 3.7 Tcf of recoverable resources, is the single largest resource on offer, though a farm-down is more likely than a direct sale.
The producing assets, though smaller in volume, are highly contested, commanding premiums near $8 per boe. Chevron's stake in the North Malay Basin is a standout producing opportunity, reflecting the company's significant contraction of its Southeast Asian resource base. Petronas is expected to lead domestic divestments, followed by Pertamina, with state-linked players like Petros, SMJ Energy, and Terengganu Petroleum emerging as potential buyers in their respective basins.
Challenges remain, as two dry wells in Eni's Vietnamese portfolio have increased commercial pressure on Ken Bau, making a farm-out with partner Essar more likely. Inpex may also look to farm down its interest in Abadi LNG after its FID announcement to spread development capital.