The Asia/Pacific region is set to see higher licensing activity in 2019 compared to the last several years, driven by stability in oil prices and more attractive fiscal terms to attract companies to invest in acreage. Licensing rounds have been announced in several countries that have not seen any bidding activity in the past few years, including Thailand, the Philippines, Sri Lanka and Myanmar.
Attracting capable players to perform exploration could completely reverse a country’s hydrocarbon fortune – as Guyana has proven in recent years. Governments are loosening their terms on royalties, acreage, and process in order to attract more buyers, but it remains to be seen if their efforts will bear fruit.
– Santosh Kumar, Analyst, Upstream Research, Rystad Energy