Upstream Oil and Gas M&A: A Window of Opportunity…and Risk
After an unspectacular couple of years, it appears that we may finally be witnessing the beginnings of a wave of deal activity across the oil and gas sector. Deal values and volumes rose dramatically in the latter half of 2016, as companies announced a flurry of deals. With oil prices starting to stabilise, there is a sense in the market that we have turned a corner, unlocking deals that were unable to progress beforehand. In this rapidly evolving landscape we see a number of emerging themes: PE (Private Equity) pursuing deals in the North Sea; larger IOCs (International Oil Companies) conserving cash and looking to divest non-core assets; a greater willingness on both sides to explore deal structures to address buyer and seller needs; and a desire to explore alliances to exploit opportunities and capabilities more cost effectively. What companies do now in this environment may dictate their success in the future.
Read more here
Associate Professor in Accounting at University of Nottingham
7yNiel, this is an interesting article. But is it the oil price that makes a bottleneck for assets transfer in the North Sea? The UK government has launched a consultancy re the effects of the fiscal regime on transfer of assets between companies. Issues around decommissioning, tax capacity etc still some of the issues need sorting before we may witness a boom in asset transfer and significant M&A transactions. I'd appreciate any thoughts on this issue.