Asia-Pacific Oil and Gas Upstream Market By Resource Type (Conventional, Unconventional), By Drilling Type (Onshore, Offshore), By Application (Industrial, Power Generation, Residential, Commercial, Transportation), By Country, Competition, Forecast and Opportunities, 2020-2030F

Forecast Period	2026-2030
Market Size (2024)	USD 1,532.52 Billion
Market Size (2030)	USD 1,976.99 Billion
CAGR (2025-2030)	4.18%
Fastest Growing Segment	Unconventional
Largest Market	China

Market Overview

Asia-Pacific Oil and Gas Upstream Market was valued at USD 1,532.52 Billion in 2024 and is expected to reach USD 1,976.99 Billion by 2030 with a CAGR of 4.18% during the forecast period. 

The Asia-Pacific oil and gas upstream market plays a pivotal role in the global energy landscape, driven by rising energy demand, economic expansion, and ongoing exploration and development activities. The region encompasses a diverse mix of mature fields in countries like Indonesia and Malaysia, alongside emerging exploration zones in India, China, Australia, and the deepwater areas of Southeast Asia. With governments increasingly focused on enhancing domestic production to reduce import dependency, significant investments have been channeled into exploration, drilling, and enhanced oil recovery technologies. For instance, India has intensified its upstream efforts through policy reforms like the Hydrocarbon Exploration and Licensing Policy (HELP) and initiatives to attract foreign direct investment. Similarly, countries such as China have accelerated upstream development as part of their broader energy security and self-sufficiency goals, with national oil companies leading large-scale investments in shale gas and tight oil.

The region's offshore segment, particularly in deepwater and ultra-deepwater basins, has gained momentum due to the declining output from onshore mature fields. Major upstream projects across Australia, Malaysia, and Vietnam are focused on tapping untapped offshore reserves, supported by advancements in subsea technologies and improved cost efficiencies. In particular, Australia continues to emerge as a leader in LNG export capacity, supported by large offshore gas developments that feed into integrated LNG infrastructure. Meanwhile, Southeast Asian nations are intensifying efforts to revitalize exploration in marginal and deepwater fields through production sharing contracts and fiscal incentives.

Despite its potential, the Asia-Pacific upstream market faces several challenges, including regulatory complexities, geopolitical tensions in the South China Sea, and environmental concerns that hinder exploration in ecologically sensitive areas. Volatility in global crude oil prices and transition pressures from climate change policies also add to the uncertainty. Nevertheless, technological innovation, digitalization of operations, and regional collaboration are helping mitigate risks and enhance production efficiency.

In the medium to long term, the Asia-Pacific oil and gas upstream market is expected to witness steady growth, driven by the need to balance energy security with sustainability. National oil companies and international players are aligning their strategies to include decarbonization initiatives such as carbon capture and storage (CCS) and methane emission reduction. As countries across the region strive to meet rising energy demands while pursuing low-carbon pathways, the upstream sector will remain a cornerstone of the Asia-Pacific energy ecosystem, shaped by policy reforms, technological evolution, and strategic partnerships.

Key Market Drivers

Rising Energy Demand Driven by Urbanization and Industrial Growth

The Asia-Pacific region is witnessing rapid urbanization and industrialization, significantly boosting energy consumption. Countries like China, India, and Southeast Asian nations are leading this surge, driven by expanding populations, infrastructure development, and manufacturing growth. This rising demand is a key driver for upstream oil and gas exploration and production, as governments and private players seek to secure energy supplies.

According to the International Energy Agency (IEA), primary energy demand in Asia is projected to account for over 40% of global energy demand growth by 2040. India alone is expected to see energy consumption double by 2045, driven largely by industrial and transportation sectors. This spike in demand has compelled regional governments to reduce import dependence and focus on indigenous upstream resource development. For example, India aims to reduce oil imports by 10% by 2030, spurring more domestic upstream investments.

Moreover, Indonesia and Vietnam are accelerating exploration activities to meet growing electricity demand in urban areas. As oil and gas remain integral to power generation and industrial heating in these countries, upstream operations are positioned as a national priority. This rising demand landscape ensures a consistent push toward both conventional and unconventional resource development.

Government Reforms and Policy Incentives for Exploration

Governments across Asia-Pacific have implemented regulatory reforms and fiscal incentives to boost upstream investment. Countries are offering simplified licensing frameworks, tax holidays, and better revenue-sharing terms to attract foreign and domestic players into exploration and development activities.

India’s Hydrocarbon Exploration and Licensing Policy (HELP) offers uniform licensing and reduced royalty rates for difficult terrains and deepwater zones. Similarly, Malaysia’s Petroleum Arrangement Contracts (PACs) have been revised to enhance flexibility, and Indonesia introduced the Gross Split PSC model, reducing government bureaucracy in cost recovery.

Between 2020 and 2023, India awarded over 100 blocks for exploration under the Open Acreage Licensing Policy (OALP), attracting interest from both private firms and national oil companies. Meanwhile, in 2022, Indonesia’s Ministry of Energy announced plans to offer 68 oil and gas working areas by 2030 to boost domestic production and reduce the country’s net import status.

Such pro-investment policies are critical in revitalizing upstream sectors, particularly in regions with untapped or underexplored reserves. The clearer legal frameworks, better risk-sharing models, and increased transparency are helping to unlock both capital and technological inflows, thereby accelerating exploration and production initiatives.

Technological Advancements in Offshore and Unconventional Resource Development

The use of advanced technologies in offshore drilling and unconventional resource extraction is significantly transforming the upstream landscape in Asia-Pacific. Innovations such as seismic imaging, directional drilling, and enhanced oil recovery (EOR) techniques have improved resource identification, recovery rates, and cost-efficiency, especially in challenging environments like deepwater and shale reserves.

Australia and China are at the forefront of applying digital oilfield technologies and horizontal drilling to tap into tight and shale gas formations. For instance, China’s shale gas output increased by 13.6% year-on-year in 2023, reaching over 23 billion cubic meters (bcm), driven by technological improvements and better well designs.

In offshore development, countries like Malaysia and Vietnam have deployed advanced subsea production systems and floating production storage and offloading (FPSO) units. These technologies have enabled efficient development of deepwater fields that were previously uneconomical.

Additionally, Enhanced Oil Recovery (EOR) projects are gaining momentum in mature fields across Indonesia and India. ONGC has initiated chemical and gas injection methods in its Western offshore basin to boost recovery rates by 10–15%. These technologies are essential not only for boosting output but also for extending the lifespan of existing assets.

Increasing Role of National Oil Companies (NOCs) in Driving Domestic Production

National Oil Companies (NOCs) play a dominant role in the Asia-Pacific upstream market. With state support, these entities are leading efforts to boost exploration, modernize infrastructure, and enhance recovery rates. Their strategic importance lies in securing domestic energy supply, creating jobs, and maintaining geopolitical leverage.

For instance, China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) together account for over 70% of China’s total oil and gas production. In India, Oil and Natural Gas Corporation (ONGC) is responsible for nearly 65% of crude oil production. These entities receive favorable access to resources, financing, and government support to pursue aggressive exploration campaigns both domestically and abroad.

Vietnam Oil and Gas Group (Petrovietnam) is expanding its upstream footprint in the South China Sea, aiming to increase oil output by 6–8% annually over the next five years. Similarly, Malaysia’s Petronas has invested over USD 5 billion in offshore field development between 2020 and 2024, focusing on marginal and deepwater fields.

These NOCs are increasingly adopting international best practices, partnering with IOCs for technical support, and investing in digital transformation to improve exploration accuracy and production efficiency. Their leadership ensures a stable and resilient foundation for upstream market growth across the region.

Regional Focus on Energy Security and Import Substitution

Energy security concerns are pushing Asia-Pacific nations to accelerate domestic upstream oil and gas development. Heavy reliance on imports, volatile global prices, and geopolitical risks have compelled governments to secure local energy resources and reduce vulnerability to external shocks.

India imports over 85% of its crude oil, costing the country nearly USD120 billion in 2023. As a response, India has prioritized domestic exploration and has launched major initiatives to double natural gas production by 2030. Similarly, Japan, which imports over 90% of its energy, is supporting overseas upstream investments via JOGMEC (Japan Oil, Gas and Metals National Corporation) to strengthen supply chain resilience.

China, despite being a global upstream player, is focusing on boosting domestic reserves through intensified shale and tight gas exploration. In 2022, China drilled over 500 new shale gas wells, a 20% increase over the previous year, with an emphasis on the Sichuan Basin.

In Southeast Asia, countries like Thailand and the Philippines are revisiting offshore prospects to reduce LNG import exposure. These regional moves are part of broader strategies to reduce current account deficits, enhance economic stability, and insulate domestic markets from global energy disruptions.

By aligning upstream strategies with national energy security priorities, countries are building more self-sufficient and resilient energy systems—thereby ensuring long-term market stability and growth potential in the Asia-Pacific oil and gas upstream sector.

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Key Market Challenges

Regulatory Complexity and Policy Inconsistencies

One of the most persistent challenges in the Asia-Pacific upstream oil and gas market is the lack of regulatory uniformity and the presence of complex, often inconsistent policy frameworks across different countries. Governments in the region frequently revise licensing regulations, local content rules, and fiscal regimes, which creates uncertainty for international and domestic investors alike.

For instance, Indonesia’s frequent shifts between cost recovery and gross split production sharing contracts (PSCs) have raised concerns about long-term project economics. In India, despite recent reforms under the Hydrocarbon Exploration and Licensing Policy (HELP), bureaucratic delays in environmental clearances and block awards continue to affect project timelines. Similarly, regulatory delays in Vietnam and the Philippines related to offshore block development discourage potential operators due to high upfront risk and long project gestation periods.

These inconsistencies are particularly problematic in frontier and deepwater areas where investment risks and costs are high. Investors need long-term policy stability and legal clarity to commit capital to such high-stake ventures. Moreover, joint ventures and partnerships often face challenges in meeting differing compliance requirements from multiple local and national authorities.

Additionally, licensing rounds in several Asia-Pacific countries often fail to meet expectations due to unfavorable fiscal terms, limited data availability, and unclear legal frameworks on revenue sharing and arbitration. This makes many projects commercially unviable or excessively risky.

Without a predictable and transparent regulatory environment, the region may struggle to attract and retain the capital and technical expertise required to explore and develop new oil and gas fields. Going forward, harmonizing policy frameworks, ensuring timely approvals, and reducing administrative burdens will be crucial for unlocking the upstream potential of the Asia-Pacific region and ensuring investor confidence.

High Development Costs and Limited Access to Financing

The Asia-Pacific upstream oil and gas sector faces escalating development costs, particularly in offshore, deepwater, and marginal fields. Exploration and production (E&P) in such environments require advanced technology, skilled labor, and complex infrastructure, all of which significantly increase capital and operational expenditures. Countries like Malaysia, Australia, and Indonesia have promising reserves, but the economics of tapping them often become unviable without strong financial backing or high oil prices.

For instance, the average cost of drilling a deepwater well in Southeast Asia can range from USD40 million to USD80 million, depending on geological conditions and depth. In addition to drilling, production facilities such as FPSOs (Floating Production Storage and Offloading units) and subsea systems further inflate costs. This limits the participation of smaller E&P companies that lack the financial muscle to manage such projects.

Access to financing has become more difficult as global banks and investment funds shift away from hydrocarbon projects due to climate risk policies and ESG (Environmental, Social, Governance) mandates. Multilateral banks and institutional investors are increasingly reluctant to fund fossil fuel-based projects, further constraining capital availability for upstream ventures in Asia.

Moreover, the return on investment in mature fields is declining due to natural reservoir depletion, while new exploration carries geological risks and extended lead times before monetization. This risk-reward imbalance disincentivizes private investment unless supported by strong fiscal incentives or strategic partnerships.

Without innovative financing mechanisms, cost optimization strategies, or enhanced participation by state-backed institutions, the upstream sector may face prolonged project delays or cancellations. Encouraging public-private partnerships, unlocking green financing for transitional hydrocarbons like natural gas, and ensuring lower breakeven costs through technology will be critical for long-term viability.

Environmental and Social Opposition to Upstream Activities

Environmental and social concerns are increasingly posing a challenge to upstream oil and gas projects in the Asia-Pacific region. As global and regional climate awareness intensifies, upstream operators face mounting pressure from governments, civil society, and international institutions to adopt sustainable practices or, in some cases, to halt operations altogether.

Major upstream projects in countries like Australia, India, and Indonesia have been delayed or canceled due to environmental litigation, local opposition, or failure to obtain clearances. For example, Australia’s offshore development projects in the Timor Sea and Great Australian Bight faced significant protests and regulatory scrutiny over marine ecosystem impacts. In India, several onshore drilling projects in environmentally sensitive zones like Assam and Arunachal Pradesh have encountered opposition from indigenous communities and conservation groups.

Stringent environmental impact assessment (EIA) processes, combined with growing community resistance, often result in prolonged approval timelines. Social license to operate (SLO)—the informal acceptance by local communities—has become increasingly critical. Projects that ignore stakeholder engagement or fail to implement effective CSR (Corporate Social Responsibility) programs are at higher risk of disruption or cancellation.

Additionally, there is increasing regional alignment with global climate goals. Countries such as Japan and South Korea have pledged net-zero emissions by 2050, while China has targeted 2060. These ambitions pressure upstream firms to demonstrate their commitment to emission reduction, responsible land use, and biodiversity conservation.

The cumulative effect is a higher cost of compliance and reputation management. Projects without robust ESG strategies are at risk of being excluded from financing or facing regulatory crackdowns. Upstream companies must now invest in cleaner technologies, carbon mitigation strategies (e.g., CCS), and community engagement initiatives to sustain operations in this evolving landscape.

Geopolitical Tensions and Territorial Disputes

Geopolitical instability is a significant challenge for upstream oil and gas operations in several parts of Asia-Pacific, particularly in offshore areas with overlapping maritime claims. Disputes in the South China Sea, tensions between India and China, and broader security concerns in Southeast Asia all pose direct and indirect risks to exploration and production activities.

The South China Sea, believed to hold over 11 billion barrels of oil and 190 trillion cubic feet of natural gas, remains a hotspot for conflict. China’s aggressive territorial assertions clash with the claims of Vietnam, the Philippines, Malaysia, and Brunei. This has led to stalled exploration activities, withdrawal of international oil companies, and diplomatic standoffs. For example, Vietnam has had to cancel or postpone exploration contracts due to Chinese interference, affecting Petrovietnam’s offshore strategy.

In South Asia, the Line of Actual Control (LAC) tensions between India and China have implications for infrastructure development and resource security in border areas like Arunachal Pradesh. Additionally, security risks from piracy in the Strait of Malacca and terrorism threats in parts of Indonesia and the Philippines increase operational risk and insurance premiums for offshore operators.

Moreover, sanctions and diplomatic restrictions on certain countries or companies—such as those related to Russia or Iran—affect partnerships, supply chains, and financing routes. Regional conflicts also threaten marine logistics, personnel safety, and the deployment of offshore rigs or supply vessels.

To mitigate these risks, companies must undertake thorough geopolitical risk assessments, diversify sourcing and project portfolios, and engage in active dialogue with host governments and regional bodies. Long-term resolution of these disputes is uncertain, making it essential for upstream stakeholders to build resilience into their operations and investment strategies.

Energy Transition Pressures and Demand Uncertainty

The accelerating global shift toward clean energy is creating long-term demand uncertainty for oil and gas, posing strategic challenges for upstream operations in Asia-Pacific. As countries implement climate policies and invest in renewables, the future demand for fossil fuels—especially oil—faces downward pressure, which could undermine the long-term viability of new exploration projects.

Asia-Pacific nations such as Japan, South Korea, and Australia have committed to net-zero emissions by 2050, while China has pledged carbon neutrality by 2060. This is prompting energy policy shifts toward electrification, green hydrogen, and large-scale renewable deployment. For upstream players, this translates into lower forecasted demand and higher carbon-related compliance costs.

Additionally, financial institutions are increasingly directing capital away from hydrocarbons to cleaner energy sources. In 2023 alone, over USD1.7 trillion was invested globally in low-carbon energy, compared to around USD1 trillion in fossil fuels, reflecting investor sentiment favoring green assets. As investment portfolios decarbonize, upstream projects with high carbon intensity or long development timelines risk becoming stranded assets.

Furthermore, consumer and corporate behavior is changing. Electrification of transport and industrial heating, along with growing energy efficiency measures, are reducing long-term demand for refined petroleum products. Asia’s biggest energy importers—such as India and China—are diversifying their supply mix to include natural gas and renewables, putting upstream oil projects under scrutiny.

Upstream companies must now reassess their portfolios, prioritize low-emission projects (e.g., gas over oil), and align operations with sustainability goals. Failure to adapt could result in reduced access to capital, market share loss, or regulatory penalties. Balancing near-term profitability with long-term transition planning is now essential to ensure the resilience and relevance of upstream operations in a decarbonizing Asia-Pacific energy market.

Key Market Trends

Shift Toward Natural Gas as a Transition Fuel

As part of broader decarbonization goals, Asia-Pacific countries are increasingly turning to natural gas as a "bridge fuel" between coal and renewables. This trend is reshaping upstream investment strategies, with both national oil companies (NOCs) and international players focusing more on gas exploration and development over oil.

Natural gas is viewed as a cleaner-burning alternative that can help nations lower carbon emissions while supporting base-load power generation and industrial activity. Countries like China, India, and Indonesia are aggressively expanding gas infrastructure, including pipelines, city gas distribution, and LNG regasification terminals, to accommodate this transition.

China, the region’s largest gas consumer, continues to explore unconventional reserves such as shale gas and tight gas, while boosting offshore production in the Bohai Bay and South China Sea. India, through ONGC and private players like Reliance-BP, is ramping up domestic gas production from deepwater fields in the eastern offshore. Meanwhile, Indonesia is prioritizing new gas finds to meet rising domestic demand and secure LNG exports.

The upstream sector is responding by shifting capital allocation to gas-based projects. New discoveries, such as Indonesia’s Tuna Block and Malaysia’s Lang Lebah field, are attracting foreign interest due to strong regional gas demand and competitive fiscal terms.

Additionally, governments are incentivizing gas production through pricing reforms, pipeline investments, and eased licensing rules. For example, India now allows free-market pricing for gas produced from challenging fields.

The increasing preference for natural gas is influencing exploration priorities, joint venture structures, and infrastructure development across the region. Over the next decade, this trend is expected to drive significant upstream activity—particularly in offshore and high-potential gas basins—making gas the central pillar of Asia-Pacific’s energy transition strategy.

Enhanced Digitization and Use of Advanced Technologies

The Asia-Pacific upstream oil and gas market is rapidly adopting digital technologies and advanced analytics to optimize operations, enhance asset productivity, and reduce costs. The COVID-19 pandemic further accelerated digital transformation, pushing companies to embrace automation, remote operations, and cloud-based monitoring to ensure business continuity.

Operators are increasingly investing in artificial intelligence (AI), machine learning (ML), and predictive analytics to improve exploration success rates and reduce drilling risks. These tools allow geoscientists to analyze seismic data more accurately and model reservoir behavior in real time. Companies such as Petronas, ONGC, and CNOOC are deploying digital twins to simulate field performance, enabling smarter decision-making in asset management.

In addition, unmanned aerial vehicles (UAVs), drones, and autonomous underwater vehicles (AUVs) are being used for pipeline inspection, environmental monitoring, and facility maintenance—enhancing safety and reducing downtime. Real-time data transmission from offshore rigs to onshore control centers helps minimize human intervention, optimize production, and reduce operational costs.

Digital oilfields and integrated asset management platforms are being adopted by large players across India, Malaysia, Australia, and China. These systems combine IoT sensors, cloud computing, and big data analytics to provide holistic visibility into asset performance, allowing for predictive maintenance and enhanced reservoir management.

Cybersecurity has also become a priority, as the increasing digitization of critical infrastructure requires robust protection against cyber threats. Many companies are now integrating cybersecurity frameworks within their operational technology (OT) environments to safeguard against disruptions.

The digital push is transforming how upstream operators manage field development, exploration planning, and HSE (Health, Safety, and Environment) compliance. This ongoing trend toward digitization will not only improve operational efficiency but also help companies meet ESG and cost-competitiveness goals in a volatile energy landscape.

National Oil Companies (NOCs) Expanding Strategic Roles

National Oil Companies (NOCs) in Asia-Pacific are becoming more dominant players in the upstream oil and gas sector, not just as producers but also as strategic investors, technology partners, and policy influencers. With governments relying on them for energy security and economic stability, NOCs are evolving from traditional operators into vertically integrated energy firms.

Companies like Petronas (Malaysia), ONGC (India), CNOOC and CNPC (China), and Pertamina (Indonesia) are leading major offshore, deepwater, and marginal field developments. They are increasingly forming alliances with international oil companies (IOCs) to bring in capital, technology, and risk-sharing for complex projects. For example, ONGC’s partnership with BP for enhancing production at Mumbai High reflects this strategic shift.

In many instances, NOCs are given preferential access to exploration blocks, strategic reserves, and government subsidies. This gives them competitive advantage over private and foreign firms, particularly in regions where local content rules or national priorities drive energy policy.

Furthermore, NOCs are diversifying their portfolios to include gas, LNG, and petrochemicals while investing in digital technologies, carbon capture and storage (CCS), and hydrogen to align with national energy transition goals. Petronas and CNOOC have both pledged net-zero targets, with ongoing investments in cleaner fuels and carbon mitigation.

NOCs are also playing a crucial role in cross-border energy collaborations, such as joint exploration agreements in the South China Sea and regional pipeline networks. Their influence in shaping regulatory frameworks, fiscal incentives, and environmental standards is growing, particularly in emerging producer nations like Myanmar, Bangladesh, and Papua New Guinea.

As Asia-Pacific’s energy needs grow, NOCs will continue to anchor upstream growth. Their expanding mandates—balancing profitability, national interests, and sustainability—make them central to the region’s oil and gas future.

Strategic Licensing Rounds and Open Acreage Policies

Governments across Asia-Pacific are reforming their upstream licensing regimes to attract more investment, encourage exploration in underexplored regions, and boost domestic production. Licensing rounds are increasingly structured around open acreage and transparent bidding models, offering more investor-friendly terms to stimulate activity.

India’s Hydrocarbon Exploration and Licensing Policy (HELP) exemplifies this trend. Through regular Discovered Small Fields (DSF) and Open Acreage Licensing Policy (OALP) rounds, India aims to increase private and foreign participation by allowing investors to select blocks based on existing data and offering revenue-sharing contracts. As of early 2025, multiple DSF projects have been awarded, signaling investor interest in smaller, high-potential fields.

Similarly, Indonesia’s Ministry of Energy has launched online data rooms and simplified bidding processes for new oil and gas blocks, especially in eastern Indonesia and deepwater basins. Malaysia’s Petronas is also actively promoting licensing opportunities under its Malaysia Bid Round (MBR), focusing on both marginal fields and gas-rich assets.

Australia, Brunei, and Vietnam have also adopted more transparent licensing practices, often supplemented with digital data platforms and fiscal incentives such as reduced royalties, tax holidays, or cost-recovery adjustments. These efforts are aimed at reducing the risk perception for frontier areas and encouraging long-term commitments.

Governments are also collaborating with seismic survey companies to improve data availability, which plays a crucial role in enhancing exploration success. The increased use of pre-bid technical data packages has improved investor confidence and bid quality.

Strategic licensing rounds are reshaping the upstream investment landscape in Asia-Pacific by promoting competitiveness and enabling easier market entry. If combined with consistent regulatory enforcement and infrastructure support, these policies could unlock substantial untapped reserves and help achieve regional energy security targets.

Segmental Insights

Resource Type Insights

Conventional segment dominated in the Asia-Pacific Oil and Gas Upstream market in 2024 due to its established infrastructure, lower development risks, and cost-efficiency compared to unconventional resources. Conventional fields—especially mature onshore and shallow-water assets—remain the backbone of oil and gas production in key countries like China, India, Indonesia, Malaysia, and Australia.

These fields benefit from decades of development, meaning most of the necessary infrastructure—such as pipelines, processing units, and transportation facilities—is already in place. This reduces capital expenditure (CAPEX) requirements and shortens the timeline from exploration to production. In contrast, unconventional resources such as shale, tight gas, and coalbed methane (CBM) require specialized technology, higher drilling intensity, and more water and energy inputs, making them more expensive and technically demanding in the region’s geological context.

Furthermore, many national oil companies (NOCs) and private players in the region continue to prioritize conventional blocks due to favorable government policies, such as production-sharing contracts, royalty reductions, and tax incentives. These incentives are primarily aimed at boosting output from discovered small fields (DSFs) and mature basins, especially in India and Indonesia.

Additionally, conventional reserves are generally easier to explore and develop, with proven geological data and historical production records that lower exploration risk. Countries like China and Malaysia, despite investing in energy transition, still rely heavily on conventional oil and gas to meet domestic demand and energy security goals.

Global oil prices in 2024 are relatively stable, encouraging sustained investment in economically viable, low-risk conventional projects. Given their reliability and cost advantages, conventional oil and gas assets are likely to maintain their dominance in Asia-Pacific’s upstream sector through the near to medium term, even as energy transition efforts gather pace.

Application Insights

Power Generation segment dominated the Asia-Pacific Oil and Gas Upstream market in 2024 due to the region's rising electricity demand driven by rapid urbanization, industrial growth, and population expansion. Countries like China, India, and Southeast Asian nations increasingly rely on natural gas as a cleaner-burning alternative to coal for base-load power generation. Additionally, government policies promoting gas-fired plants to reduce carbon emissions have spurred upstream gas production. The availability of domestic gas reserves and expanding pipeline and LNG infrastructure further support this trend, solidifying power generation as the primary end-use sector for upstream oil and gas output in the region.

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Country Insights

Largest Country

China dominated the Asia-Pacific Oil and Gas Upstream market in 2024 due to its significant investments, large-scale domestic production capabilities, and strategic energy policies. As the region's largest economy and one of the world’s biggest energy consumers, China’s upstream sector benefits from strong government support and massive capital allocation aimed at achieving energy security and reducing import dependence.

China possesses substantial conventional and unconventional hydrocarbon reserves, particularly in the Sichuan, Ordos, and Tarim basins. In recent years, Chinese national oil companies (NOCs) such as PetroChina, Sinopec, and CNOOC have ramped up exploration and production activities, leveraging advanced technologies like enhanced oil recovery (EOR) and horizontal drilling to optimize output. In addition, China has aggressively pursued the development of shale gas, with Sichuan Province becoming a regional hub for unconventional gas production.

The government’s policies under the 14th Five-Year Plan continue to emphasize self-sufficiency in oil and gas. This includes increasing domestic output, offering incentives to upstream players, and opening selected fields to private and foreign investment. Moreover, China’s Belt and Road Initiative (BRI) enhances its upstream presence through overseas asset acquisitions and infrastructure development, indirectly strengthening its market position.

China also leads in energy infrastructure development, including pipeline networks and LNG terminals, enabling efficient movement of upstream resources to high-demand regions. The country’s vast industrial base and urban population create consistent, long-term demand, particularly for natural gas, which is being positioned as a transitional fuel in its decarbonization journey.

Emerging Country

Japan was the emerging country in the Asia-Pacific Oil and Gas Upstream market in the coming period due to its growing focus on energy diversification and increased investments in domestic energy production. With limited natural reserves, Japan has prioritized the development of offshore gas fields and LNG infrastructure to secure energy supplies. Technological advancements in exploration, along with strategic partnerships with global energy firms, have boosted Japan’s upstream activities. Moreover, Japan is actively seeking to reduce dependence on imports by exploring untapped domestic resources, positioning the country as a rising force in the region’s upstream energy landscape.

Recent Developments

• In February 2025, during India Energy Week, the Government of India signed multiple strategic agreements and MoUs to bolster energy security, diversify supply chains, and encourage innovation in the oil and gas sector. Addressing the media, Petroleum Minister Shri Hardeep Singh Puri emphasized that these agreements represent key milestones in building a more resilient and sustainable energy framework for India, aligning with long-term national goals for energy independence and low-carbon growth.
• In March 2025, Cairn Oil & Gas, a Vedanta Group subsidiary and India’s largest private E&P company, initiated a major offshore development project on India’s West Coast. The project, launched via a Memorandum of Understanding (MoU) and Master Service Agreement (MSA) with 2H Offshore, targets an estimated ultimate recovery of 20 MMBOE. It is the largest development under India’s Discovered Small Fields (DSF) offshore blocks, enhancing Cairn’s production profile and offshore asset portfolio.
• In February 2025, ONGC entered into a strategic agreement with bp, appointing it as the Technical Services Provider (TSP) for the Mumbai High field—India’s most productive offshore oil asset. The partnership aims to leverage bp’s global technical expertise to optimize reservoir performance, boost hydrocarbon recovery, and modernize field operations. This collaboration marks a key step in ONGC’s efforts to maximize output from mature assets and sustain production from critical domestic fields.
• In January 2025, ONGC announced a projected USD10.3 billion revenue increase, supported by enhanced oil and gas production from the Mumbai High field. This growth is driven by a technical partnership with bp Exploration (Alpha) Ltd, a wholly owned subsidiary of BP Plc, engaged as the Technical Service Provider. The collaboration focuses on deploying advanced recovery technologies and performance optimization, positioning Mumbai High for substantial productivity improvements and long-term value generation.

Key Market Players

• ExxonMobil.
• Royal Dutch Shell.
• Chevron Corporation
• BP
• ConocoPhillips
• TotalEnergies
• Saudi Aramco
• PetroChina
• China National Offshore Oil Corporation
• Gazprom

By Resource Type	By Drilling Type	By Application	By Country
Conventional Unconventional	Onshore Offshore	Industrial Power Generation Residential Commercial Transportation	China Japan India South Korea Australia Singapore Thailand Malaysia

Report Scope:

In this report, the Asia-Pacific Oil and Gas Upstream Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Asia-Pacific Oil and Gas Upstream Market, By Resource Type:

o   Conventional

o   Unconventional

• Asia-Pacific Oil and Gas Upstream Market, By Drilling Type:

o   Onshore

o   Offshore

• Asia-Pacific Oil and Gas Upstream Market, By Application:

o   Industrial

o   Power Generation

o   Residential

o   Commercial

o   Transportation

• Asia-Pacific Oil and Gas Upstream Market, By Country:

o   China

o   Japan

o   India

o   South Korea

o   Australia

o   Singapore

o   Thailand

o   Malaysia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Asia-Pacific Oil and Gas Upstream Market.

Available Customizations:

Asia-Pacific Oil and Gas Upstream Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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