APAC Oil Companies’ Standalone Credit Profiles Under Pressure, but NOC Ratings Intact

...The financial profiles of APAC companies exposed to upstream operations have weakened across the board. But negative rating actions in APAC since oil prices rapidly declined from 2H14 have largely been confined to small upstream companies such as MIE Holdings (B-/Rating Watch Negative) of China and small independent oilfield services companies such as Anton Oilfield Services Group (CCC). Australia's Origin Energy Ltd was an exception, being downgraded to `BBB'/Stable in August 2015. APAC companies' ability to weather a period of low oil prices is supported by their generally low lifting costs ¡ the cost of operation and maintenance after facilities are developed for production. These are typically USD10-20 a barrel (see Asia-Pacific Exploration & Production Handbook ¡ August 2015). But full-cycle costs exceed USD30 a barrel for rated companies....

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