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.

Infrastructure Transport

12 Jan 2026

Dhalbhumgarh Airport Faces 150-km Rule Hurdle

The issue has resurfaced following a recent statement by Union Civil Aviation Minister Ram Mohan Naidu, who said that under existing aviation policy, a new greenfield airport is generally not permitted within an aerial distance of 150 kilometres of an operational civilian airport. He added, however, that if a formal proposal is submitted, its impact on the existing airport can be examined and relaxations may be considered on a case-by-case basis. While the clarification has revived some hope for Dhalbhumgarh, it has also underlined the scale of the technical challenge facing the project. Unde..

Infrastructure Transport

12 Jan 2026

Stakeholders Seek Parallel Ops For Vizag Airports

With road and metro rail links to Bhogapuram still several years away, stakeholders in north Andhra Pradesh have renewed demands to continue civil operations at INS Dega even after the commissioning of Bhogapuram International Airport. The new airport is expected to begin commercial operations from June. Officials said close to 80 per cent of the airport infrastructure at Bhogapuram, including the terminal building and internal approach roads, has already been completed. However, inadequate external connectivity remains a key concern. Making a case for parallel operations, Andhra Pradesh Air ..

Infrastructure Transport

12 Jan 2026

Govt To Roll Out V2V Tech To Cut Road Crashes

In an effort to curb road accidents, particularly in low-visibility conditions such as dense fog, the government is set to roll out vehicle-to-vehicle (V2V) communication technology that will allow cars to exchange real-time data and alert drivers to potential dangers. The announcement was made by Union Road Transport and Highways Minister Nitin Gadkari after the 43rd meeting of the Transport Development Council. The technology involves installing an on-board unit (OBU) in vehicles, enabling wireless data exchange between nearby cars. This will allow vehicles to share information such as spee..