Kazakh Oil and Gas Industry Ready for International Expansion – Ernst & Young

October 31, 2013

Ernst & Young has compiled a report assessing the prospects of Asian oil and gas markets for the next several years. The survey looks at the removal of barriers for national companies towards globalization.
The report says that Asian national oil companies have been very active on external markets of late, looking for opportunities to buy both extractive companies and reserves in order to have access to resources. Most of the contracts concluded by the companies involved investment in foreign markets. Such contracts accounted for more than 65% of the deals made by the national companies and for almost 78% of the total value of the deals concluded in 2011. This globalization trend was preserved also in 2012, when international assets accounted for 76% of all acquisition deals and 93% of their total value.
While Asian companies get involved in more countries, the conditions in which they conduct their business are becoming more complicated. The companies face the need to monitor legislative changes, as well as requirements and operational standards in different countries. It is very important to appropriately organize relations between local subdivisions and the main offices in the home countries, including accounting procedures and the degree of autonomy.
Copyright: OilNews.kz, 2013