Global oil and gas transactions review 2012

Active and resilient M&A environment

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With an average of more than four transactions every day, oil and gas has remained one of the most active and resilient global sectors for M&A.

In 2012, the oil and gas transaction value recorded was US$402b. This value was significantly higher than the US$337b posted in 2011 and eclipsed the previous record of US$393b from 2010.

An increased willingness to commit to larger transactions underpins these statistics. In 2012, 92 oil and gas transactions exceeded US$1b in value, compared with just 71 in 2011.

Looking beyond the megadeals, the 1,616 oil and gas transactions recorded in 2012 represented a marginal decrease from the 1,664 deals in 2011. A volume of 1,225 in asset deals was virtually identical to the prior-year total, while corporate deal volumes of 391 were 10% lower.

Volatility in capital markets steered sellers toward asset deals, and unpredictable movements in valuations also pushed buyers in this direction.

We’re beginning a new year, but it is unlikely to be a new story for transactions in the oil and gas sector. The dynamics of an energy hungry world and a capital-hungry sector will continue to combine to drive transaction activity.

We expect 2013 to be another robust year of activity for transactions across every segment of the oil and gas value chain.