docFinder alert PLS PLS
Week of January 28, 2013Volume 3, No. 2

Chinese and Asian NOCs Buying Accelerating

Took 25% of Global Upstream Market in 2012


$49 Billion in 2012

A record

January 14, 2013

Full Presentation



China, Asia Market Share

2007 - 2012

January 14, 2013

Full Presentation


This docFinder Alert provides you with insight into the accelerating pace of Chinese and Asian NOCs buying of global oil and gas assets.  PLS expects this trend to continue unabated for the foreseeable future. Besides the NOCs, Japanese firms are also active buyers.  Growing demand in Asia is the driving force behind this activity.  The increasing energy demand is clearly depicted in this slide presented by BP from the recently issued BP Energy Outlook 2030. From the seller's side, the NOCs bring significant capital, which in the case of North American resource plays allows for acceleration of full development.

Shown above are two slides from our recent review of the 2012 Global Upstream Oil & Gas M&A markets.  The source data for the analysis is from our comprehensive PLS Global M&A Database.  The slide above left shows the increase in the NOC's buying since 2007.  The activity reached a record $49 billion in 2012.  The slide above right shows the global market share of both the Chinese and Asian NOCs.  Excluding the $62 billion Rosneft buy of TNK-BP in 2012, Chinese NOCs accounted for 16% of the global market while other Asian NOCs accounted for 10%.

Since 2007, Chinese and Asian NOCs have bought over $147 billion of upstream oil and gas assets globally.  The top 5 buyers from 2007 to 2012 are Sinopec ($44 billion), CNOOC ($31 billion), KNOC ($15 billion), PetroChina ($14 billion) and Petronas ($10 billion).

The Table below breaks out the numbers:

In $US billion 2007 2008 2009 2010 2011 2012 Total
Chinese NOCs $0.2 $4.9 $17.3 $32.2 $19.3 $30.7 $104.7
Asian NOCs $1.0 $7.2 $5.1 $6.4 $4.2 $18.8 $42.5
TOTAL $1.2 $12.1 $22.3 $38.6 $23.5 $49.3 $147.2
Source PLS Inc. and Derrick Petroleum Services Global M&A Database.


More HOT slides and data below. 

Shown below are select slides showing specific deals and players. The sellers include Pioneer Natural Resources, Devon Energy, Nexen and Cove Energy.  Buyers below include Sinochem, Sinopec, Sumitomo, CNOOC and PTTEP.


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featured.slides from docFinder

Slide Slide Slide Slide


$1.7B Wolfcamp JV

January 8, 2013

Devon Energy

Sinopec & Sumitomo 

January 9, 2013


$17.9 B Corporate Sale

July 23, 2012

Cove Energy/PTTEP

$1.8 B Corporate Sale

June 20, 2012

Two days ago on Jan. 30, Pioneer Natural Resources  announced a $1.7B JV with Sinochem on 207,000 net acres in the horizontal Wolfcamp shale play. Terms call for $0.5B cash plus $1.2B to be paid by carrying 75% of PXD's future drilling costs. Ownership will be PXD (60%), Sinochem (40%). After allocating $150 MM to existing horizontal wells, PLS values the deal at $18,720 per acre. Another perspective on the costs and economics in the play is shown here from Laredo. This is PXD's first Chinese NOC JV. Sinochem previously in May 2010, did a $3.1B deal with Statoil to buy 40% of a Brazil offshore field (Peregrino). That deal closed April 2011. 


Devon Energy struck a $2.25B JV with Sinopec in January 2012 to drill across 5 unconventional US plays covering 1.5 MM net acres. Split was Devon (66.7%), Sinopec (33.3%). Sinopec paid $0.9B cash plus a $1.6B carry. Sinopec's latest deal is a November $2.5B buy of a 20% interest in Nigeria's Usan oilfield from Total (by the way, CNOOC got a separate 20% interest in the same field via its Nexen buy). Last August, Devon did its second Asian-partner JV, though this time not with a NOC, but with Japan's Sumitomo for $1.4B ($0.4B cash, $1.0B carry). Ownership: Devon 70%, Sumitomo 30%. This JV covers 650,000 acres in the Wolfcamp and Cline shale plays. 


In the largest Chinese NOC buy to date, CNOOC agreed in July 2012  to buy Nexen for $18B cash plus net debt. The deal has yet to close but did get Canadian government approval on December 8, 2012. The corporate buy allows CNOOC to establish a platform run by the existing Nexen operating and management team to further its regional growth objectives.  For perspective on CNOOC, the company just recently announced its 2013 capital plan of $16B, of which 64% is within China. CNOOC's most recent deal is a $1.9B buy to acquire an interest in the Queensland Curtis LNG project in Australia, announced on October 31, 2012 from BG.


After a hard fought bidding battle with Shell, PTTEP (the NOC of Thailand) won the buy of Cove Energy for $1.8B in cash plus debt. The deal closed August 17, 2012. Cove's highly prized deepwater position in East Africa, offshore Mozambique and Kenya, attracted major oil companies across the globe.  In Mozambique, Anadarko has been a leader in finding a giant gas resource that will be utilized to supply LNG to Asia. PTTEP continues to buy and in October 2012 bought a 15% interest in the Natuna gas project in Indonesia from operator Pertamina.  For more intelligence, this slide shows PTTEP's major exploration activities across the globe.  


Full Presentation

Full Presentation

Full Presentation

Full Presentation

featured.transactions from PLS global M&A database

01/30/13 Pioneer and Sinochem form Wolfcamp JV $1,700 MM
01/29/13 Kinder Morgan acquires Copano Energy $5,000 MM
01/17/13 Energy XXI buys interest in Laphroaig field in South Louisiana from McMoRan $80 MM
01/15/13Denbury acquires Cedar Creek Anticline assets from ConocoPhillips $1,050 MM

Source: PLS M&A Database