...April 22, 2019 SINGAPORE (S&P Global Ratings) April 23, 2019--Most national and private Asian oil producers are increasing focus on their home markets in their search of production scale and reserves. We believe this reduces their operating risks--given that they are accustomed to the relevant regulatory regimes, local communities, and basin geology. Economic returns from domestic markets are also more remunerative than before, with investment costs falling due to technological improvements and regulatory regimes that are generally supportive of market pricing. Over the last decade, many APAC oil producers have expanded their portfolios outside their domestic markets--lured by producing assets, prolific reserve basins, and attractive returns from high oil prices. But in our view, international expansion has produced mixed results. Often, the acquired assets--primarily in west Asia and Africa--faced production setbacks driven by sociopolitical risks, or their economics proved disappointing....
