The rise of the national oil companies and impact on Australia

Abstract

The oil and gas industry is facing a period of major transition as national oil companies (NOCs) improve their operating capabilities and change their investment models

KPMG’s Global Oil and Gas Centre of Excellence has commissioned a report which analyses this changing environment, interviews senior executives from major NOCs to understand their views and offers our insights into emerging issues for the oil and gas industry.

NOCs are moving outside their national boundaries, partially privatising their assets and demanding more from potential partners and investors.

The key findings from this survey are as follows:

1. the growing capabilities of NOCs

2. the definite shift from the use of ownership to service contracts;

3. the success of service companies; international oil companies are responding to the changing landscape; and,

4. investment in people and skills is a top NOC priority.

The potential impact of the above findings on the Australian oil and gas sector are significant, and include:

1. reduced access to international service companies;

2. shortage of skills

3. increased opportunities for Australian service companies; and,

4. increased focus by international oil companies on upstream opportunities in Australia.

KPMG’s report was prepared during a period of rising oil prices. Even during the current period of price volatility, the majority of findings continue to be relevant for participants in the oil and gas industry.