Firms Have Put $9.6 Billion in Asian Oil Assets on Offer
Upstream operators are shifting capital as major energy firms divest late-life holdings across Southeast Asia.
Updated on Oct. 5, 2026 in Oil and Gas
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Companies have placed $9.6 billion worth of upstream oil and gas assets on the market across Southeast Asia, spanning 45 production sharing contracts. The sale signals a strategic shift as energy majors look to prune portfolios and focus on core basins.
Why it matters
Energy majors are divesting these assets to mitigate frontier risk and focus capital on core basins, while independent operators seek external funding to reach final investment decisions on unproven resources.
The $9.6 billion in available assets includes 145,000 barrels of oil equivalent per day in current production. Transaction metrics for development assets have climbed to $9.8 per barrel of oil equivalent, with 72 percent of total resources currently in the pre-final investment decision stage.
The players
Chevron
A multinational energy major that has significantly reduced its regional footprint, dropping from 3 billion barrels of oil equivalent in 2020 to 300 million barrels today.
Petronas
The Malaysian national oil company expected to play a central role in the next wave of domestic divestment activity.
The details
Operators are utilizing farm-down agreements as a primary mechanism to advance large-scale projects, allowing firms to share development costs and risks. Simultaneously, national oil companies are leveraging partnerships to rationalize and consolidate domestic holdings. This activity is concentrated across 12 provinces, including significant pre-FID gas positions in the Kutei Basin, Sarawak, and the Andaman Sea.
Timeline
Assets worth $6.7 billion changed hands throughout 2025.
Companies have listed $9.6 billion in upstream assets on the market for the 2026-2027 period.
Market Landscape
The current market activity represents a continuation of the portfolio pruning strategy established by the 2020-2024 regional divestment cycle by energy majors. This wave of transactions reflects a broader shift toward domestic control as regional national oil companies absorb assets shed by international firms.
Operators should monitor upcoming deal closures for shifts in regional development metrics, particularly as transaction prices for pre-FID resources currently exceed $3 per barrel. Independent firms evaluating these acquisitions should ensure they have capital partners capable of supporting long-term project development.
The takeaway
The pivot by majors toward core basins is creating significant entry points for independent operators, provided they can manage the high costs of pre-FID resource development. Track the transaction metrics of major divestments to better price your own regional resource acquisitions.
Further reading
For more on industry shifts, see our Oil and Gas section.
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