Australia Benefiting From Frontier Market Exit

摘要

BMI View: As oil majors look to streamline their portfolios, frontier markets and mature assets in Southeast Asia are the main targets for divestment. The switch to lower-risk projects is supporting the attractiveness of more developed markets and investment in quality resources with expansion potential. The Southeast Asia region continues to take the brunt of international oil company's upstream divestments as oil majors look to raise cash and target lower portfolio breakevens (see 'IOC Divestments Heading Upstream', August 5). Chevron has been the leading protagonist in this trend largely due to its Asia-heavy portfolio among the majors, with around 27% of the company's commercial reserve portfolio located in the region. Shell is also making strategic upstream divestments in the region, particularly in its oil fields.