Thursday 28 March 2024
 
»
 
»
Story

Oil-gas mergers and acquisitions up $39bn

MANAMA, October 10, 2014

A total of 299 merger and acquisition transactions were completed in the first six months of the year in the oil and gas industry globally, one less than in the same period a year earlier.

The total value of deals in the first half rose by $39 billion globally, to $141 billion from $102 billion in the first half of last year, said a report in the Gulf Daily News (GDN), our sister publication.

This is according to Deloitte's latest report entitled 'Mergers and Acquisitions Report - Midyear 2014: The deal market may be poised for a rebound', which delivers insights of Deloitte mergers and acquisitions specialists on what is driving activity in the oil and gas industry.

The first half saw a continuation of many of the oil and gas industry trends present last year.

Companies continue to be focused on cost containment and organic growth, particularly in the upstream sector, where producers are looking to ensure they have the right mix of properties in their portfolio.

“Largely because of geopolitical unrest that has curtailed production from Libya, Iraq and Iran, commodity prices have remained relatively high for the first half of the year, and expectations for continued upward pressure on prices for the remainder of the year may make producers less likely to part with assets,” said Deloitte Middle East partner in charge of the energy and resources industry Kenneth McKellar.

“Meanwhile, natural gas prices have remained stable, and the potential for increased demand from US exports of liquefied natural gas may draw some new buyers to the market as they look to increase their exposure to gas,” he added.

The US and Canada accounted for 61 per cent of all deal activity, though this percentage slipped slightly from the first half last year.

In the first half of the year, both Asia and South America saw increases in their share of the deal count rising nearly 20 per cent and 50 per cent, respectively.

“The uptick in deal activity in June of this year could signify a stronger deal market in the second half of the year,” said Deloitte corporate finance chief executive Humphry Hatton.

“Upward pressure on commodity prices is likely to drive more transactions, and private equity investors, in particular, are likely to continue to show interest and be a source of capital,” said Hatton. - TradeArabia News Service




Tags: Oil | gas | merger | acquisition | global |

More Energy, Oil & Gas Stories

calendarCalendar of Events

Ads