Volatile oil market hinders Australia's national oil firms

• Source: Xinhua
• [15:37 September 25 2009]
• Comments

Volatile oil markets have constrained the traditionally powerful national oil companies' grip on oil reserves in favor of their international rivals, auditor Klynveld Peat Marwick Goerdeler (KPMG) said on Friday.

Leader of KPMG's Perth-based Oil and Gas Center of Excellence,Brent Steedman said unsettled markets had caused a shift in the balance of power between national oil companies (NOCs) and international oil companies (IOCs) in exploring new projects and transactions.

"While volatility is starting to open up the field for IOCs, both IOCs and NOCs face the same problem of surviving the lower oil price whilst maintaining multi-billion-dollar capital projects," Steedman said in a statement.

"This is likely to lead to closer relations between IOCs and NOCs, and partnering will be seen as a mutually beneficial way forward."

He noted IOCs had a renewed focus on opportunities with NOCs, but there was "no sign of IOCs allocating funds away from Australia".

"In fact, we see increased investment in Australia. "The recent approval of the Gorgon LNG (liquefied natural gas)
project is a good example."