Getting the house in order

Implications of prolonged low oil prices

Overview

2014 saw the fall of global oil prices that continue to plague the  industry. Since then, the oil and gas industry has had to adapt and innovate in order to remain sustainable. This trend looks to stay for some time.
This publication looks at the possible avenues in building the industry's sustainability. Inside, we take a closer look at a Norwegian case study - how a National Oil Company (NOC) applied different approaches to reshaping the oil and gas market to a leaner service sector.

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Outlook for Southeast Asia and implications for Malaysia

1. Asia continues to remain heavily reliant on hydrocarbons
2. Oil and gas production has declined as fields reach maturity, combined with low upstream investments
3. The region faces high breakeven prices, which will adversely affect upstream investments
4. Oil and gas service providers face growing pressure from low oil prices as gearing levels remain high
1. NOCs and service providers must intensively work in concert to quickly reduce breakeven prices
2. Banks and market participants must all work together to find viable solutions
3. Bondholders of oil and gas service providers need to be realistic going into any restructuring negotiations
4. Oil and gas players must simultaneously focus on financial, operational and strategic measures to survive

Contact us

Lee Chui Sum

Deals Partner, Restructuring, PwC Malaysia

Tel: +60 (3) 2173 1388

Albert Lee

Deals Partner, Transaction Services, PwC Malaysia

Tel: +60 (3) 2173 1082

Lavindran Sandragasu

Oil & Gas Leader, PwC Malaysia

Tel: +60 (3) 2173 1494

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