The Changing Face of National Oil Companies (NOCs): NOC and State Strategies Driving Internationalization

• Publication date: September 2009

The Changing Face of National Oil Companies (NOCs): NOC and State Strategies Driving Internationalization Summary GlobalData’s latest release “The Changing Face of National Oil Companies (NOCs): NOC and State, Strategies Driving Internationalization” that provides detailed analysis of national oil companies across the value chain detailing the role and position of the NOCs in each segment of the value chain, also detailing the...

The Changing Face of National Oil Companies (NOCs): NOC and State Strategies Driving Internationalization

Summary

GlobalData’s latest release “The Changing Face of National Oil Companies (NOCs): NOC and State, Strategies Driving Internationalization” that provides detailed analysis of national oil companies across the value chain detailing the role and position of the NOCs in each segment of the value chain, also detailing the major planned projects by NOCs, both domestic and international. It also provides a comparison between the national oil companies and the major private international oil companies across various operational parameters. The report discusses the major strategies adopted by the NOCs in order to achieve a sustained growth and further expand their operations internationally. In addition, it covers the major M&A activities undertaken by the NOCs over the past five years leading to internationalization of operations. Key opportunities for the NOCs for future growth are also discussed.
National oil companies are becomingly increasingly active in each segment of the crude oil and natural gas value chain. The NOCs dominate the upstream industry, are fast expanding their operations in both midstream and downstream industry and are also actively participating in the global M&A activities. The NOCs are fast increasing their operations not only in the domestic country but also internationally, giving a fierce competition to the international oil companies (IOCs). These national oil companies enjoy the strong backing of the state governments and are comfortably placed for a strong growth in the future years.
Major national oil companies, undeterred by the global financial crisis, have a planned capex of over $261 billion during 2009. The NOCs of major oil and gas producing countries will spend approximately $540 billion in oil and gas investments over the next five years. The companies will also invest to make their operations more integrated and also expand internationally. The Chinese and Indian national oil companies will continue to spend aggressively in overseas acquisitions. Several Chinese national oil companies have invested over $33.8 billion from 2003 to July 2009 in acquiring different assets across the globe. The industry will also witness increased NOC-NOC partnerships during 2009-15, with the companies leveraging on political ties in order to expand their operations. China’s recent loan for oil agreements with different oil and gas producing countries will allow the country’s different NOCs to expand their presence in the related countries. Chinese government has spent approximately $45 billion in different loan for oil agreements in 2009.

Scope

- Analysis of major national oil companies such as Saudi Aranco, Gazprom and National Iranian Oil Corporation across each segment of crude oil and natural gas value chain, detailing their position in each industry namely upstream, midstream and downstream
- Details of the major projects planned by national oil companies across the midstream and downstream oil and natural gas industry during 2009-15
- Analysis of role of NOCs in M&A activity during 2003-09, bringing out the most active NOCs in M&A activity globally and also in each region
- Comparison of NOCs with major private international players in terms of reserves, production and E&P spending. In addition, the listed NOCs are also compared with the super major
international players like ExxonMobil, BP Plc, Royal Dutch Shell
- Major future challenges to both NOCs and the private players are also discussed
- In depth analysis of major strategies adopted by the NOCs in order to both develop the domestic oil and gas sector and expand internationally
- The future role and opportunities for the NOCs are also discussed

Reasons to buy

- Identify your position in the global oil and gas industry by understanding the major oil and gas
- players in the industry.
- Benchmark against operations and competitive strategies of the NOCs and IOCs in the world.
- Devise strategies to safeguard your interests based on insights on the strategies and internationalization of the NOCs and its impact on the global oil and gas industry.
- Understand the strategies adopted by the NOCs and identify possible opportunities to partner with them.
- Stay ahead of competition by understanding the level of completion in the industry by identifying the position of international oil companies and the national oil companies in each industry across the value chain.
- Make informed business decisions by understanding the structure of the overall oil and gas industry in terms of major players in each industry across the value chain.

Global Energy Industry

Table Of Contents

1 Table of contents 3
1.1 List of Tables 5
1.2 List of Figures 6
2 Introduction 8
2.1 GlobalData Report Guidance 9
3 The Role Of National Oil Companies In The Energy Market 10
3.1 The National Oil Companies Dominate the Upstream Sector and their International Operations are Primarily Driven by Domestic Oil and Gas Reserves 11
3.2 The Increasing Role of NOCs in the Global Midstream and Downstream Industry 12
3.3 The Increasing Resource Nationalization 12
3.4 NOCs Increasing their Participation in Merger and Acquisition Activities 13
3.5 IOCs will Find it Difficult to Increase their Reserves Base without Entering into Partnership with NOCs 13
3.6 NOCs Comfortably Positioned to Pose Strong Growth in Comparison to IOCs 13
4 The National Oil Companies Dominate the Upstream Oil and Gas Industry 14
4.1 Global Oil and Gas Industry, Competitive Overview 14
4.1.1 Global Oil and Gas Industry, Top 25 Companies by Reserves, 2008 14
4.1.2 Global Oil and Gas Industry, Top 25 Companies by Production, 2008 17
4.2 National Oil Companies, Overview 18
4.2.1 Major NOCs by Reserves, 2008 19
4.2.2 Major NOCs by Production, 2008 22
4.3 Major International Oil Companies, Overview 24
4.3.1 Major IOCs by Reserves, 2008 25
4.3.2 Major IOCs by Production, 2008 28
4.4 The National Oil Companies Controlling the Global Upstream Industry 31
4.4.1 Share of NOCs in the Global Oil and Gas Supply, 2008 31
4.4.2 Share of NOCs in Domestic Country Production, 2008 33
4.5 Future of the Global E&P Sector with the Growing Role of NOCs 35
5 The NOCs Expanding Their Presence in the Global Midstream and Downstream Industry 36
5.1 National Oil Companies: Playing a Prominent Role in the World Pipeline Industry 36
5.1.1 World Pipeline Industry: Competitive Landscape, 2008 36
5.1.2 Major National Oil Companies in World Pipeline Industry, 2008 40
5.2 National Oil Companies: Expanding their Presence in the Global LNG Industry 41
5.2.1 LNG Liquefaction Industry: Competitive Landscape, 2008 42
5.2.2 Major National Oil Companies in the LNG Liquefaction Industry, 2008 44
5.2.3 National Oil Companies: Major Planned Expansion in LNG Liquefaction Capacity, 2009-15 45
5.2.4 LNG Regasification Industry: Competitive Landscape, 2008 46
5.2.5 Major National Oil Companies in LNG Regasification Industry 48
5.2.6 National Oil Companies: Planned Expansion in LNG Regasification Capacity, 2008-15 48
5.3 Major Investment in Storage Facilities from NOCs will drive the Storage Industry to 2015 50
5.3.1 Oil Storage Industry: Competitive Landscape, 2008 50
5.3.2 Oil Storage Industry: Major NOCs, 2008 52
5.3.3 National Oil Companies: Major Planned Expansion in Oil Storage Capacity, 2009-15 53
5.3.4 Underground Gas Storage Industry: Competitive Landscape, 2008 54
5.4 National Oil Companies Will Drive the Growth of Refining Industry to 2015 55
5.4.1 World Refining Industry, Competitive Landscape, 2008 56
5.4.2 World Refining Industry: Major National Oil Companies, 2008 57
5.4.3 National Oil Companies: Planned Expansion in Refining Capacity, 2009-15 59
5.5 Major Planned Midstream and Downstream Projects by NOC, 2009-15 62
5.5.1 Major Pipeline Projects by NOCs, 2009-15 63
5.5.2 Major LNG Projects by NOCs, 2009-15. 64
5.5.3 Major Refineries by NOCs, 2009-15 65
5.6 The Changing Face of the World Midstream and Downstream Industry in the Backdrop of Growing Investments by NOCs 65
6 The Increasing Resource Nationalization Guarantees The Growing Role Of NOCs In Energy Market 67
6.1 Resources Nationalization in Middle East Countries 67
6.2 The Emergence of Nationalization in South American Countries 68
6.2.1 Venezuela and Bolivia lead the Nationalization Process in the Region 68
6.2.2 Brazil’s new proposed legislation for the oil and gas industry: Strengthening the role of NOC in Domestic Upstream sector 68
6.3 Nigeria’s New Petroleum Industry Bill will Provide Boost to NNPC’s Operations 69
7 NOCs: Playing An Important Role in Global Mergers And Acquisitions 70
7.1 The Increased Participation of NOCs in Global Mergers & Acquisitions 70
7.1.1 Global Oil and Gas Industry, M&A Activity of NOCs, 2004- July 09 70
7.2 M&A Activity by National Oil Companies: Analysis by Region 74
7.2.1 Major Deals by NOCs in Asia Pacific 2004-July 09 74
7.2.2 Major Deals by NOCs in the Middle East and Africa 2004- July 09 76
7.2.3 Major Deals by NOCs in South and Central America 2004- July 09 77
7.2.4 Major Deals by NOCs in Europe, 2004- July 09 79
7.2.5 Major Deals by NOCs in North America, 2004- July 09 81
8 Changing Role Of NOCs In The Energy Market: Major Strategies Adopted 83
8.1 National Oil Companies Investing Heavily to Develop the Domestic Oil and Gas Industry 83
8.2 Vertical Integration of Operations across the Value will Strengthen National Oil Companies Position in the World Energy Market 84
8.3 Rapidly Increasing Energy Demand has Significantly Increased the M&A Activities of Resource Poor National Oil Companies 86
8.4 Collaborating With Each Other is Becoming an Attractive Option for the National Oil Companies 89
9 Comparative Analysis Of National Oil Companies And The International Oil Companies 93
9.1 World Oil and Gas Reserves, Comparison of National Oil Companies and International Oil Companies 93
9.1.1 Crude Oil Reserves, National Oil Companies Compared To International Oil Companies, 2008 94
9.1.2 Natural Gas Reserves, National Oil Companies Compared To International Oil Companies, 2008 95
9.2 World Oil and Gas Production, Comparison of National Oil Companies and International Oil Companies 96
9.2.1 Crude Oil Production, National Oil Companies Compared To International Oil Companies, 2008 97
9.2.2 Natural Gas Production, National Oil Companies Compared To International Oil Companies, 2008 98
9.3 International Oil Majors and Listed NOC: Performance Metrics 99
9.3.1 Oil and Gas Reserves and Production, 2008 100
9.3.2 Reserves by Production Ratio, 2008 100
9.3.3 Total Cost Incurred, 2008 102
9.3.4 Revenue from Upstream Oil & Gas Operations, 2008 103
9.3.5 Oil & Gas Revenue per Boe, 2008 104
9.4 Major International and Independent Oil Companies versus the National Oil Companies: Total E&P Spending, 2008 106
9.5 Challenges for NOCs In Future 108
9.5.1 Huge Investment Requirements to Develop the Upstream industry 108
9.5.2 National Priorities May Hinder the Development of NOCs 108
9.6 The Challenges for the IOCs In Future 108
9.6.1 Limited Access to Oil and Gas Resources 108
9.6.2 The Rise of the Oil Field Services Companies 109
9.7 Future Prospects For NOCs In The World Energy Market 110
9.7.1 NOCs will lead the Investments in the Energy Sector during 2009-15 110
9.8 NOCs Dealing with National Priorities and Moving towards Internationalization 112
9.9 Greater Partnerships with Oil Field Service Companies Will Further Strengthen the Position of National Oil Companies 113
9.10 E&P Joint Venture with IOCs Offer a Win-Win Position to both IOCs and NOCs 113
9.11 The National Oil Companies Making Their Mark in the Unconventional Oil and Gas Industry 113
10 Appendix 115
10.1 Market Definitions 115
10.1.1 Oil and Gas Reserves 115
10.1.2 Oil and Gas Reserve/Production Ratio 115
10.1.3 Oil & Gas Revenue 115
10.1.4 Total Revenue per boe 115
10.2 Abbreviations 115
10.3 Methodology 116
10.3.1 Coverage 116
10.3.2 Secondary Research 117
10.3.3 Primary Research 117
10.3.4 Expert Panel Validation. 117
10.4 Contact Us 118
10.5 Disclaimer 118
List of Tables

1.1 List of Tables
Table 1: Major National Oil Companies, Rank in Oil and Gas Reserves and Production, 2008 11
Table 2: World, Top 25 Companies By Oil and Gas Reserves, 2008 15
Table 3: World, Top 25 Companies By Total Oil and Gas Production, 2008 17
Table 4: Major National Oil Companies by Oil and Gas Reserves, 2008 19
Table 5: Major National Oil Companies by Oil and Gas Production, 2008 22
Table 6: Top 20 International Oil Companies by Total Oil and Gas Reserves, 2008 25
Table 7: Top 20 International Oil Companies by Total Oil and Natural Gas Production, 2008 28
Table 8: Percentage Share of Major NOCs in Domestic Crude Oil Production, 2008 33
Table 9: Percentage Share of Major NOCs in Domestic Gas Production, 2008 34
Table 10: Crude Oil Pipeline Industry, Top 20 Players, 2008 36
Table 11: Natural Gas Pipeline Industry, Top 20 Players, 2008 38
Table 12: Crude Oil Pipeline Industry, Top 20 National Oil companies, 2008 40
Table 13: Natural Gas Pipeline Industry, Top 10 National Oil Companies, 2008 41
Table 14: LNG Liquefaction Industry, Top 20 Players, 2008 42
Table 15: Global LNG Liquefaction Industry, Top 15 National Oil Companies in terms of Capacity, 2008 44
Table 16: Major National Oil Companies, LNG Liquefaction Capacity Expansion, 2009-15 45
Table 17: LNG Regasification Industry, Top 20 Players, 2008 46
Table 18: LNG Regasification Industry, Major National Oil Companies, 2008 48
Table 19: Major National Oil Companies, LNG Regasification Capacity Expansion, 2009-15 49
Table 20: Crude Oil Storage Industry, Top 20 Players In Terms Of Capacity, 2008 51
Table 21: Global Oil Storage Industry, Top 15 NOCs by Storage Capacity, 2008 52
Table 22: Oil Storage Industry, Major Capacity Expansion Planned by NOCs, 2009-15 53
Table 23: National Oil Companies, Major Planned Crude Oil Storage Terminals, 2009-15 54
Table 24: Underground Gas Storage Industry, Top 20 Players by Working Gas Capacity, 2008 54
Table 25: World Refining Industry, Top 20 Players by Capacity, 2008 56
Table 26: World Refining Industry, Top 15 National Oil Companies, 2008 58
Table 27: World Refining Industry, Top 20 Players, 2015 60
Table 28: National Oil Companies, Increase in Refining Capacity , 2008-15 61
Table 29: Major Planned Gas Pipeline Projects by National Oil Companies, 2009-15 63
Table 30: Major Planned LNG Liquefaction and Regasification Terminals by NOCs, 2009-15 64
Table 31: Major Planned Refineries by National Oil Companies, 2009-15 65
Table 32: Top 25 M&A and Asset Transactions Deals, 2004-July 09 71
Table 33: Top 25 M&A and Asset Transactions Deals, 2004-July 09 72
Table 34: Top 20 Deals by National Oil Companies in Asia Pacific Region, 2004- July 2009 74
Table 35: Top 20 Deals by National Oil Companies in Middle East and Africa Region, 2004- July 2009 76
Table 36: Top 20 Deals by National Oil Companies in South and Central America , 2004- July 2009 78
Table 37: Top 20 Deals by National Oil Companies in Europe , 2004- July 2009 80
Table 38: Top Deals by National Oil Companies in North America, 2004- July 2009 82
Table 39: Major Integrated National Oil Companies, Level of Integration Across the Value Chain, 2008-15 85
Table 40: Chinese National Oil Companies, Major Deals, 2003-July 2009 86
Table 41: Indian National Oil Companies, Major Deals, 2003-July 2009 88
Table 42: National Oil Companies, Major Joint Ventures Incorporated, 2008 to July 2009 90
Table 43: National Oil Companies, Major Joint Ventures Incorporated, 2008 to July 2009 91
Table 44: China’s Loan for Oil Agreements, 2009 92
Table 45: Major Listed NOCs and International Majors, Comparative Performance Metrics (1/2), 2008 99
Table 45: Major Listed NOCs and International Majors, Comparative Performance Metrics (2/2), 2008 99
Table 46: Major IOCs and Major Listed NOCs, R/P Ratios, 2008 100
Table 47: Major IOCs and Major Listed NOCs, Total Cost Incurred, 2008 102
Table 48: Major IOCs and Major Listed NOCs, Total Revenue from Oil and Gas Operations, 2008 103
Table 49: Major IOCs and Major Listed NOCs, Oil & Gas Revenue per boe, 2008 105
Table 50: World, Major Oil and Gas Companies, Total E&P Spending, 2008 107
Table 51: Major National Oil Companies, Planned Capital Expenditure 2009 110
Table 52: National Oil Companies, Unconventional Oil and Gas Assets Deals, 2009 114
List of Figures

1.2 List of Figures
Figure 1: World, Top 25 Companies by Oil and Gas Reserves, (Billion Barrels), 2008 17
Figure 2: World, Top 25 Companies By Oil and Gas Production, (Million Barrels), 2008 19
Figure 3: Top 20 National Oil Companies by Crude Oil Reserves, 2008 21
Figure 4: Top 20 National Oil Companies by Natural Gas Reserves, 2008 22
Figure 5: Top 20 National Oil Companies by Crude Oil Production, 2008 24
Figure 6: Top 20 National Oil Companies by Natural Gas Production, 2008 25
Figure 7: Top 20 International Oil Companies in Terms of Crude Oil Reserves, 2008 27
Figure 8: Top 20 International Oil Companies in Terms of Natural Gas Reserves, 2008 28
Figure 9: Top 20 International Oil Companies in Terms of Crude Oil Production, 2008 30
Figure 10: Top 20 International Oil Companies in Terms of Natural Gas Production, 2008 31
Figure 11: Percentage Share of IOCs and NOCs in the World Crude Oil and Natural Gas Reserves, 2008 32
Figure 12: Percentage Share of IOCs and NOCs in the World Crude Oil and Natural Gas Production, 2008 33
Figure 13: Crude Oil Pipeline Industry, Major IOCs and NOCs Dominating the Industry 38
Figure 14: Natural Gas Pipeline Industry, Major IOCs and NOCs Dominating the Industry, 2008 40
Figure 15: Global LNG Liquefaction Industry, Major IOCs and NOCs Dominating the Industry, 2008 44
Figure 16: LNG Regasification Industry, Major IOCs and NOCs Dominating the Industry ,2008 48
Figure 17: Major National Oil Companies in terms of LNG Regasification Capacity, 2015 51
Figure 18: Crude Oil Storage Industry, Major IOCs and NOCs Dominating the Industry, 2008 52
Figure 19: Crude Oil Storage Industry, Top 15 NOCs by Storage Capacity, 2008 54
Figure 20: Natural Gas Storage Industry, Major IOCs and NOCs Dominating the Industry, 2008 56
Figure 21: World Refining Industry, Major IOCs and NOCs Dominating the Industry, 2008 58
Figure 22: World Refining Industry, Top 15 National Oil Companies, 2008 59
Figure 23: World Refining Industry, Major NOCs and IOCs, 2015 62
Figure 24: Global M&A Transactions By Volume & Share Of NOCs, 2004-July 09 73
Figure 25: Global M&A Transactions By Value & Share Of NOCs, 2004-July 09 74
Figure 26: Asia Pacific, Acquisition and Asset Transaction Deals of NOCs, by Volume and Value, 2004-July 09 76
Figure 27: Middle East and Africa, Acquisition and Asset Transaction Deals of NOCs, by Volume and Value, 2004- July 09 78
Figure 28: South and Central America, Acquisition and Asset Transaction Deals of NOCs, by Volume, 2004-July 09 80
Figure 29: Europe, Acquisition and Asset Transaction Deals of NOCs, by Volume and Value,
2004- July 09 82
Figure 30: Investments in Oil and Gas Industry by Major NOCs, 2009-13 85
Figure 31: Chinese National Oil Companies, M&A Activity by Deal Value and Volume, 2003- July 09 88
Figure 32: Indian National Oil Companies, M&A Activity by Deal Value and Volume, 2003- July 09 90
Figure 33: Global Oil and Gas Industry, Major NOCs and IOCs in Terms of Oil and Gas Reserves, 2008 94
Figure 34: Global Oil and Gas Industry, Comparison of NOCs and IOCs in Terms of Oil Reserves, 2008 95
Figure 35: Global Oil and Gas Industry, Comparison of NOCs and IOCs in Terms of Natural Gas Reserves, 2008 96
Figure 36: Global Oil and Gas Industry, Comparison of Major NOCs and IOCs in Terms of Oil and Gas Production , 2008 97
Figure 37: Global Oil and Gas Industry, Comparison of Major NOCs and IOCsz in Terms of Crude Oil Production , 2008 98
Figure 38: Global Oil and Gas Industry, Comparison of Major NOCs and IOCs in Terms of Natural Gas Production , 2008 99
Figure 39: Listed NOCs and International Majors, R/P Ratio, 2008 102
Figure 40: Listed NOCs and International Majors, Total Cost Incurred, 2008 103
Figure 41: Listed NOCs and International Majors, Total Revenue from Oil and Gas Operations, 2008 105
Figure 42: Listed NOCs and International Majors, Oil & Gas Revenue per boe, 2008 106
Figure 43: National Oil Companies and Major IOCs and Independent Companies, Total E&P Spending, 2008 107
Figure 44: Foreign Company Access To Proven Oil Reserves, 2008 110
Figure 45: Top 20 National Oil Companies by Planned Capex ,2009 112
Figure 46: Major National Oil Companies, Level of Internationalization, 2008 113
Figure 47: GlobalData Methodology 117