China Exploration & Production, 2025

China Exploration & Production, 2025

Summary

China remains Asia's largest oil and gas producer, with srong upstream resilience driven by national oil companies (NOCs) such as CNPC, Sinopec, and CNOOC. While oil production is set to decline post-2026, natural gas remains stable and central to China's energy transition strategy. Despite geopolitical uncertainty and rising energy security concerns, China continues to invest in mature and offshore fields, supported by enhanced oil recovery (EOR) and reinvestment into low-cost projects. However, exploration is largely internal, licensing is limited, and M&A activity remains domestic and modest.

With declines in onshore production being offset by a ramp-up in offshore and deepwater expansion, Indonesia is keen to continue its E&P activities, and incentivize domestic, and outside investment to do the same. Projects like Geng North, Gendalo-Galang, and renewed investments in Tangguh, will keep up production levels, while ultra-deepwater projects continue to come online.

Today, Pertamina dominates the hydrocarbon sector in Indonesia, but Eni’s acquisitions and drastic growth could reflect a change in market dynamics. Despite all the challenges, Indonesia’s commitment to technological advances to work on maturing fields to increase outputs, increased investments, and ET goals, maintains their status in Southeast Asia, and global energy markets.

Scope

• In-depth analysis of China's exploration and production sector. It covers crude oil and natural gas production, with focus on major oil developments, licesnsing rounds, and M&A activity.

• Comprehensive, data-driven, timely, region-specific, strategic, insightful, forward-looking, geopolitical, investment-focused, and energy transition.