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Mitchell and Lahn on Asian Oil Companies and Global Energy Security

Chatham House researchers John Mitchell and Glada Lahn advise that although production abroad by Asian national oil companies (ANOCs) is small right now, its relevance to global energy security could change if ANOCs gain significant positions in Iraq or Iran. ANOC host governments are attracted to such Middle East investment by the lower requirements for transparency or diminished social standards in foreign markets. ANOCs are also willing to pay in upstream assets, e.g. refineries. There are drawbacks including supply insecurities from political disruption in exporting countries, however, and ANOCs are therefore pursuing a strategy of diverse investment.