Bridging the gap: Innovative structures supporting Oil & Gas deals
Over the last year, the Oil & Gas sector has seen an increase in the number of deals with a contingent pricing mechanism. In other words, transactions where there is an additional future payment from buyer to seller if certain specific criteria are met, such as Exxon Mobil’s acquisition of InterOil which features additional consideration linked to the volume of resource at the Elk-Antelope field in Papua New Guinea. This is not a new thing, of course – deals like this have been done for years in one form or another - but the recent increase in deals with a contingent element may well be indicative of a trend that has been expected for some time.
Read more about it in our latest blog - http://pwc.blogs.com/deals/2017/03/bridging-the-gap.html.