Lao PDR

Investment & Operational Criteria

Key Indicators
‍

Risk Premia
‍

5.000

Outlook
‍

Negative

Rating
‍

DD|5S|-

Ranking
‍

121

Reserves (1P)
‍

Total
‍

mm boe

Oil
‍

Summary

Laos is in debt distress with high inflation and opaque regulation, and has no hydrocarbon sector. Outlook maintained because there has been no material change. Outlook: Negative. Risk premia unchanged at 5%.

Updated

October 7, 2026

Country Basics

Region

Asia - South East

Reserves (1P)
‍

Oil
‍

mm bbl

Gas
‍

bcf

Location

Southeastern Asia, northeast of Thailand, west of Vietnam.

Outline

Tax Regime
Type

PSC/PSA

Tax Regime
Notes

Laos does not have laws and regulations to govern crude oil and gas extraction and production. Currently, the government of Laos applies a production sharing contract ("PSC") model similar to other countries; however, conditions for each contract/agreement may be different based on a negotiation between the government and the contractor.

Investment &
Operational
Climate

Laos is a one-party state facing debt distress, high inflation and a weak kip, with heavy exposure to Chinese creditors. US and UK guidance cite opaque regulation, corruption and limited legal recourse, partly offset by connectivity from the Laos–China railway. Laos has no oil or gas production. Hydropower exports to Thailand and neighbours are central to its 'battery of Southeast Asia' strategy, but the state utility, EDL, is heavily indebted.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.