Oil and gas deal activity falls
According to GlobalData, a research and consulting firm, global upstream oil and gas deal activity totalled US$19.3 billion from 125 transactions in June 2015, including capital markets and mergers and acquisitions (M&A). This figure represents a US$4.3 billion decrease in value compared to the US$23.6 billion across 119 deals recorded in May 2015.
Findings in the GlobalData upstream deals review
GlobalData’s most recent monthly upstream deals review highlighted that upstream M&A accounted for US$8.8 billion from 18 transactions in June 2015, reducing from US$11.7 billion in May 2015. However, the number of M&A transaction announcements has increased by 5, from 13 in May.
The report suggests that Europe, the Middle East and Africa led the global acquisitions market in terms of value in June 2015, with a 39% regional share totalling US$4 billion.
Comment from GlobalData Oil and Gas Research and Consulting
Matthew Jurecky, GlobalData’s Head of Oil and Gas Research and Consulting, states: “Capital raising continues at the healthy clip seen in 2015, driven by debt offerings in the US almost a year from prices collapsing. Companies continue to seek financial flexibility and restructure short- and reserves-based capital to avoid bankruptcy.”
He adds: “M&A momentum continued in June with Emirates National Oil Company proposing a buy-out of Dragon Oil, BP buying a stake in one of Rosneft’s Siberian fields, and Wintershall selling a package of North Sea assets to Tellus Petroleum. Market conditions will continue to fuel a desire for M&A. After a failed attempt years ago, Emirates National Oil Company is another case of a company taking advantage of depressed asset values to consolidate ownership in one of its positions, Dragon Oil.”
Edited from a press release by Louise Mulhall