•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Asia Pacific oil and gas leaders fear increased operating costs will derail growth

    GL Noble Denton

    Rising operating costs will be the biggest barrier to oil and gas companies’ growth in Asia Pacific next year, according to new research on the outlook for the industry in 2013 by GL Noble Denton.

    While the sector’s rapid growth is bringing huge new opportunities to the region, the research, which will be published in an in-depth report by the independent technical advisor to the oil and gas industry in January, shows that significant challenges remain.

    According to initial results from GL Noble Denton’s survey of nearly 400 senior industry professionals, over half of those from the Asia Pacific region (53%) identified rising costs as one of their three biggest concerns for 2013, and a serious threat to the growth of their business.

    This represents a substantial increase compared to last year when, in a similar survey, just 39% of respondents from the region forecast increased operating costs as a top three barrier to business growth in 2012.

    Commenting on the trend, Richard Bailey, executive vice president for GL Noble Denton’s operations in Asia Pacific, said: “Increasing operating costs are understandably a worry for Asia Pacific’s oil and gas leaders and, according to our research, they are more concerned by the trend than professionals in other production hubs across the world.

    “The mounting cost of operations is largely down to an increase in the complexity of oil and gas projects, a surge in insurance premiums and the acute lack of suitably qualified professionals across the region.

    “Add to this a rising tide of supply chain consolidation; a trend that’s making it harder for smaller companies to secure work on large ventures with high capital expenditure, many of which are in Australia. To this end, the game is definitely becoming one that increasingly favours Asia Pacific’s big players. The smaller outfits, which may not have the same track record and process experience, need to fight very hard to stay in the game.

    See reports on Australia's oil and gas sector: Australia Part I and Australia Part II.

    “Overall, there is every reason for the region to be bullish about growth prospects and the indications are that the industry will spend heavily next year. Projects are becoming ever more complex and inevitably the levels of investment required are huge. The results of our research show that Asia Pacific’s oil and gas leaders will put a sharp focus on improving the operational and cost efficiency of their assets in 2013.”

    Related Articles

    Progressive Equities reports funding of Redhawk Resources–Fund I

    08/20/2014 Progressive Equities LLC has reported the completion of the funding of a new oil and energy partnership on behalf of Redhawk Resources–Fund I. Progressive Equities LLC, Redhawk Resources LLC, and C...

    Rice Energy closes public offering of common stock

    08/20/2014 Rice Energy Inc. has completed its underwritten public offering of 13,729,650 shares of its common stock at $27.30 per share, including 1,790,824 shares pursuant to the full exercise by the underwr...

    Indonesia, Vietnam pose high risk for oil and gas companies, investors overconfident in Egypt

    08/19/2014 Indonesia’s climate for investments in the oil & gas sector weakened significantly due to restrictions on foreign direct investments, opportunities in Vietnam remain hampered by the South China...

    Dejour closes $1.5 million equity offering

    08/18/2014 Dejour Energy Inc. has closed the equity financing offering previously announced on Aug. 11, receiving net proceeds of $1.5 million from three institutional investors to support the company’s 2014 ...

    Gastar Exploration sees base increase to $145M

    08/14/2014

    Gastar Exploration Inc. reported that the borrowing base under its revolving credit facility has been increased to $145 million.

    More Oil & Gas Financial Articles

    Progressive Equities reports funding of Redhawk Resources–Fund I

    Wed, Aug 20, 2014

    Progressive Equities LLC has reported the completion of the funding of a new oil and energy partnership on behalf of Redhawk Resources–Fund I. Progressive Equities LLC, Redhawk Resources LLC, and Culbreath Oil and Gas Co. are the companies creating the partnership.

    Rice Energy closes public offering of common stock

    Wed, Aug 20, 2014

    Rice Energy Inc. has completed its underwritten public offering of 13,729,650 shares of its common stock at $27.30 per share, including 1,790,824 shares pursuant to the full exercise by the underwriters of their option to purchase additional common stock from the selling stockholders named in the registration statement.

    Indonesia, Vietnam pose high risk for oil and gas companies, investors overconfident in Egypt

    Tue, Aug 19, 2014

    Indonesia’s climate for investments in the oil & gas sector weakened significantly due to restrictions on foreign direct investments, opportunities in Vietnam remain hampered by the South China Sea dispute, and investors in Egypt are at risk of confusing gradual political risk improvements for newfound, long-term stability according to a new ranking from the Emerging Markets Group of Alliant Insurance Services.

    Dejour closes $1.5 million equity offering

    Mon, Aug 18, 2014

    Dejour Energy Inc. has closed the equity financing offering previously announced on Aug. 11, receiving net proceeds of $1.5 million from three institutional investors to support the company’s 2014 Woodrush development plan.

    Gastar Exploration sees base increase to $145M

    Thu, Aug 14, 2014

    Gastar Exploration Inc. reported that the borrowing base under its revolving credit facility has been increased to $145 million.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ