Southeast Asian NOCs Push Capex Higher

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Southeast Asian national oil companies (NOCs) have set some of their highest capital expenditure plans of the past decade amid windfall revenues from soaring commodity prices. Growing concerns about energy security amid oil and gas supply crunch fears, plus a need to advance projects delayed during the pandemic, help explain the surge in planned investments. Malaysia’s Petronas expects to invest 60 billion ringgit ($14 billion) this year, up from initial plans of 40 billion-50 billion ringgit. This marks the company’s second-highest spending plan since 2015 and a reversal of last year, when the NOC invested just 30.5 billion ringgit against guidance of 40 billion-45 billion ringgit. In Thailand, PTT Exploration and Production (PTTEP) is allocating $27.2 billion for the 2022-26 period, its highest five-year investment plan since 2016. It plans to spend $5.66 billion in 2022 alone — its highest level in the past seven years. Indonesia's Pertamina is targeting spending of $70 billion-$80 billion over 2022-26, including annual capex of $9 billion. This is up dramatically from the $5.68 billion Pertamina spent last year.

Capital Spending, NOCs, Corporate Strategy , Exploration
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