Global oil and gas transactions review 2012
Downstream activity cautious in mature markets
Inside
Transaction activities declined marginally during 2012.
The downstream sector’s number of transactions fell to 162 in 2012, some 6% lower than 2011. This decline is particularly evident in the United States and South America, where transaction volumes have reduced by 8 and 7, respectively.
Companies remain fundamentally cautious in those mature markets due to the continuing downside risks for oil product demand, driven by uncertain economic outlook and austerity measures. In contrast, transaction volumes in Asia have increased by 9 as demand for oil products continues to grow in the region.
However, the disclosed value of downstream transactions in 2012 of US$42.3b is similar to the prior year. Based on disclosed values, the top 10 deals in the sector during 2012 had a combined value of US$25.4b, accounting for nearly 63% of the disclosed value of all transactions in the sector globally.
Top 10 transactions in 2012 based on disclosed value
Top 10 transactions in 2012 based on disclosed value
| Announced date | Buyers | Sellers | Nature of asset | Value |
| 16 May 12 | Macquarie European Infrastructure Fund | E.ON AG | Gas transmission system in Germany | 4,118 |
| 30-Jan-12 | TonenGeneral Sekiyu K.K. | Exxon Mobil | Retail, refining and storage assets in Japan | 3,935 |
| 18-Apr-12 | Alimentation Couche-Tard Inc. | Statoil ASA | 54% share of Statoil Fuel & Retail ASA | 3,371 |
| 29-May-12 | Cosan SA Industria e | BG Group plc | 60.1% holding in Companhia de Gas de Sao Paulo, a gas distribution company in Brazil | 2,707 |
| 1-Nov-12 | Williams Partners LP | Williams | 83% interest in Geismar olefins production facility, propylene splitter and pipelines in the US | 2,364 |
| 19-Jul-12 | Current shareholders | Georgia Gulf | PPG Industries separated its chemicals business and then merged it with Georgia Gulf Corporation. PPG shareholders will receive approximately 50.5% of the shares of the merged company | 2,082 |
| 6-Jun-12 | Corporacion Financiera | Promigas SA ESP | 75% of Colombian company Promigas, a natural gas transmission and distribution company | 1,858 |
| 28-Feb-12 | The Blackstone Group LP | Cheniere Energy, | Equity ownership interest in Cheniere Energy Partners, which is building an LNG export facility in Sabine Pass, Louisiana | 1,998 |
| 26-Apr-12 | Suburban Propane | Inergy LPP | Propane operations in 33 US states from 338 customer service centers | 1,800 |
| 13-Aug-12 | Tesoro Corporation | BP plc | Carson refinery, ARCO-branded retail marketing network | 1,175 |
Source: IHS Herold Inc.
×Forty-two percent of downstream transaction volumes were in the United States (68), with Europe (28) and Asia (20) together accounting for a further 30% of volume.
Similar to 2011, the volume of asset transactions exceeded those that were in nature. There were 111 announced asset transactions with a disclosed value of US$24.6b, compared with 51 corporate transactions with a disclosed value of US$17.7b.
The midstream segment
The number of transactions in the midstream segment in 2012 decreased by 19%, from 111 in 2011 to 90 in 2012. The reported deal value decreased significantly, from US$87.3b in 2011 to US$50.3b in 2012.
74% of midstream transaction activity in 2012 relates to that the United States, primarily involving assets related to gas gathering andprocessing. We expect the trend of disaggregating infrastructure ownership to continue in 2013, not only in the United States, but globally.