New Multinationals from Emerging Asia: The Case of National Oil Companies

Abstract

The history of global foreign direct investment (FDI ) and of the rise of multinational enterprises is, to a large extent, the history of the global oil industry. In the twentieth century, oil-producing Asia was one of the main destinations of global oil FDI flows and in the early twenty-first century Asia, including both producer and consumer countries, is home to some of the most dynamic oil companies worldwide. This paper first examines the oil industry in Emerging Asia to identify the main actors in terms of production, ownership, and governance. The main features of the multinational expansion of the largest Asian national oil companies, in terms of country of operation, patterns of integration, and entry mode, are discussed. The concluding section outlines some of the main implications of this international drive, comparing it with the rise of the Italian energy company Eni in the 1950s.