Southeast Asia's upstream oil and gas deal market is shifting from majors exiting the region to companies buying their way in, according to new research from Rystad Energy. Roughly $9.6 billion in assets are on offer through 2027, and competition is pushing valuations well above historical averages.
Southeast Asia's upstream merger and acquisition conversation has moved from which international oil companies are leaving to who is buying their way in. Research from Rystad Energy shows a competitive cycle ahead, with $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 toward strategic entry. Assets worth around $6.7 billion changed hands under this new intent in 2025, a departure from 2020-2024, when majors trimmed late-life positions amid production sharing contract expirations.
Transaction metrics have risen alongside the competition. Recent deals have reached $9.8 per barrel of oil equivalent for development assets and over $3 per boe for pre-FID resources, against six-year averages of $6-7 per boe and $1.5 per boe, respectively.
Majors, independents and NOCs chase different goals
The $9.6 billion splits almost evenly between energy majors at $3.6 billion and independents at $3.7 billion, while national oil companies account for $1.4 billion and a handful of smaller sellers make up the rest. Majors are selling assets in countries with limited upside to focus on a few core basins, entering frontier acreage through partnerships instead of carrying the risk alone. Independents, however, are chasing capital: Harbour Energy's Andaman portfolio sits on pre-FID discoveries that need more than one balance sheet to reach a final investment decision.
NOCs are the most selective of the three. Petronas, having built up its domestic portfolio through its Searah joint venture with Eni, now has room to rationalize late-life assets at home while eyeing entry elsewhere. According to Prateek Pandey, Head of APAC Oil & Gas Research at Rystad Energy: "Growth is the common theme across nearly every portfolio in the region right now."
Sarawak, the Andaman Sea and Kutei Basin draw the interest
The opportunities span nearly 45 PSCs across 12 provinces, holding 2.8 billion boe of net resources and about 145,000 boepd of production, yet 72% of those resources remain at the pre-FID stage, with only 18% producing. Sarawak, the Andaman Sea and the Kutei Basin hold the region's largest pre-FID gas positions, led by Lang Lebah, Harbour's Andaman II and South Andaman, and Eni's Kutei hub. Vietnam's Ken Bau, holding 3.7 trillion cubic feet of recoverable resources, is the single largest resource on offer, though a farm-down looks more plausible than a direct sale after years stuck between appraisal and development.
Chevron's retreat opens room for state-linked buyers
The producing slice is smaller but more contested, with just 17 PSCs competing for buyers and a track record of commanding a premium near $8 per boe. Chevron's stake in the North Malay Basin, the second-largest producing gas block in Peninsular Malaysia, is the standout offer and a marker of a broader retreat: Chevron's Southeast Asian resource base has fallen from nearly 3 billion boe in 2020 to around 300 million boe today. Petronas is expected to lead the next wave of domestic divestments, followed by Pertamina, with state-linked buyers such as Petros, SMJ Energy and Terengganu Petroleum positioned to acquire assets in their home basins.
Source: Oilprice.com
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