• 1 hour Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 2 hours OPEC Set To Move Fast On Cut Extension Decision
  • 4 hours Nigeria Makes First Step Away From Oil
  • 16 hours Russia Approves Profit-Based Oil Tax For 2019
  • 20 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 22 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 1 day Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 1 day Maduro Names Chavez’ Cousin As Citgo Boss
  • 1 day Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 7 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default
  • 7 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
Alt Text

GE Looks To Divest Energy Assets As Turmoil Continues

General Electric’s turmoil continues as…

Alt Text

Who's Next? Venezuela's Collapse Puts These Nations At Risk

While investors have been ignoring…

Alt Text

EU Aims To Reform World’s Biggest Carbon Market

The European Union is divided…

Asian Energy Giants Plan A Spending Spree In Oil & Gas

China oil tanks

Good news for mining finance this week. With Australia’s EMR Capital announcing it has raised $860 million for a second investment fund targeting gold, copper, potash, and coking coal projects.

But elsewhere on the planet, some other big resource investors announced even larger investment plans. In the global oil and gas sector.

Not one, but two firms said this week they are planning a spending spree on petro-acquisitions over the coming year. Both of them based in the energy-hungry climes of Asia.

The first is Indonesia state oil company Pertamina. Which told Interfax it plans to radically increase spending on project acquisitions for 2017.

Pertamina said it is currently flush with cash. With net profits for the first three quarters of 2016 having doubled to $2.8 billion (as compared to just $1.4 billion last year), due to better margins on the company’s refining operations in today’s lower oil price environment.

With these increased profits in hand, Pertamina said it will increase its capital spending budget for 2017 to between $5 billion and $7 billion. A significant rise from the $4 billion budgeted for 2016.

This year’s budget included $700 million for upstream project acquisitions — which Pertamina deployed for stakes in projects in Gabon and Tanzania. And if the projected budget increase for next year goes ahead, there could be even more acquisitions coming globally.

And they’re not the only Asian energy giant on the hunt for projects. Related: Saudi Arabia Issues Warning To Trump: Don’t Stop Saudi Oil Imports

Japanese energy companies also said this week they’re going after international acquisitions in a big way. With state-owned Japan Oil, Gas and Metals National Corporation (Jogmec) saying Wednesday it has been cleared by the government to fund a massive wave of M&A.

Jogmec said it now has access to up to $5.2 billion yearly to fund oil and gas acquisitions for Japanese energy firms. Giving the firm a massive purse to spend on buying companies and projects — which Japanese officials said is a key part of securing the country’s energy future.

Japanese firms have traditionally looked around the world for acquisitions — meaning that projects almost anywhere could be targeted as part of this spending spree. Watch for deals being struck by both Pertamina and Jogmec, which could provide some big capital injections for projects, or hefty returns for shareholders of takeover companies.

Here’s to going shopping.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News