An average capital expenditure (capex) of $17.8bn per year will be spent on 336 oil and gas fields in Southeast Asia between 2018 and 2020, according to GlobalData, a leading data and analytics company.
Capex on Southeast Asia’s traditional oil projects will add up to $8.3bn over the three-year period, while heavy oil fields will require $1.7bn over the same period. Investments into gas projects in Southeast Asia will total $43.4bn in upstream capex by 2020.
Jonathan Markham, Oil & Gas Analyst at GlobalData said, “Shallow water projects will be responsible for over 63 percent of $46.3bn of upstream capex in Southeast Asia, or $31.1bn by 2020. The onshore projects will be responsible for over 12% or $5.8bn, whereas deepwater and ultra-deepwater necessitate $9.4bn in capex over the period.”
Petroliam Nasional Berhad will lead Southeast Asia in capex, investing $7.5bn into the region’s upstream projects by 2020. PT Pertamina (Persero) and Chevron Corporation will follow with $4.3bn and $3.1bn invested into Southeast Asia’s projects between 2018 and 2020.
Tangguh, a producing conventional gas field in Indonesia will lead capital investment with $5.2bn 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 $3bn. 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 $2.9bn. 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 $10.3. Ultra-deepwater projects have the lowest full cycle capex/boe at $8.6, followed by onshore developments with $9.7. Deepwater projects have the highest full cycle capex/boe at $15.9.
