APAC Oil & Gas Firms Sustain Upstream Capex"

01 Nov 2023 CW Team

Despite these financial commitments, APAC O&G companies have gained more flexibility for capex in 2022 due to significant reductions in leverage. Furthermore, many of these companies have robust access to funding, thanks to their close affiliations with sovereign entities.

The growing energy demand in the APAC region remains a significant factor motivating rated issuers to focus on preserving or expanding their reserves, particularly in natural gas, which serves as a critical transitional energy source.

Integrated producers in the region are also gearing up for substantial downstream investments to strengthen their petrochemical capabilities.

In the medium term, Fitch foresees a rapid increase in capex for rated issuers' energy transition initiatives, albeit starting from a relatively modest base.

Despite the growing emphasis on decarbonisation targets, fossil fuels are expected to continue as the primary source of revenue for APAC O&G producers in the medium term.

While many issuers have outlined long-term decarbonisation objectives, concrete plans to achieve these targets often lack implementation details.

Environmental regulations are anticipated to become more stringent, driving the transition towards cleaner energy sources. However, this transition may be slower in the APAC region compared to Europe, where fossil fuels remain the primary energy source in major Asian economies.

New fossil fuel projects may encounter increased regulatory challenges, especially in more developed APAC markets like Australia.

Most of the APAC O&G producers rated by Fitch are national oil companies or their subsidiaries. Their credit ratings are closely linked to changes in the ratings of sovereigns or government-owned parent organisations, as their assessments are primarily conducted on a top-down basis.

Fitch Ratings has reported that oil and gas (O&G) producers in the Asia-Pacific (APAC) region are expected to maintain their capital expenditure (capex) for the upstream segment. This is primarily driven by the region's commitment to national energy security and the increasing need for energy transition. Despite these financial commitments, APAC O&G companies have gained more flexibility for capex in 2022 due to significant reductions in leverage. Furthermore, many of these companies have robust access to funding, thanks to their close affiliations with sovereign entities. The growing energy demand in the APAC region remains a significant factor motivating rated issuers to focus on preserving or expanding their reserves, particularly in natural gas, which serves as a critical transitional energy source. Integrated producers in the region are also gearing up for substantial downstream investments to strengthen their petrochemical capabilities. In the medium term, Fitch foresees a rapid increase in capex for rated issuers' energy transition initiatives, albeit starting from a relatively modest base. Despite the growing emphasis on decarbonisation targets, fossil fuels are expected to continue as the primary source of revenue for APAC O&G producers in the medium term. While many issuers have outlined long-term decarbonisation objectives, concrete plans to achieve these targets often lack implementation details. Environmental regulations are anticipated to become more stringent, driving the transition towards cleaner energy sources. However, this transition may be slower in the APAC region compared to Europe, where fossil fuels remain the primary energy source in major Asian economies. New fossil fuel projects may encounter increased regulatory challenges, especially in more developed APAC markets like Australia. Most of the APAC O&G producers rated by Fitch are national oil companies or their subsidiaries. Their credit ratings are closely linked to changes in the ratings of sovereigns or government-owned parent organisations, as their assessments are primarily conducted on a top-down basis.

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Infrastructure Energy

12 Dec 2025

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Infrastructure Energy

12 Dec 2025

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..