Global oil and gas transactions review 2012
Upstream spending rises
Inside
Activity levels declined slightly, but M&A spend rose significantly in 2012.
Three key themes underpinned deal activity in 2012.
- IOCs and larger independents have focused on optimizing their asset portfolios
- NOCs have continued to expand into international markets with a number of key acquisitions and joint ventures
- Mid-cap companies with sizable capital commitments have had to entertain varied strategic options as conventional debt and equity investment remains challenging
Relative oil pricing stability and a significant number of large discoveries have also championed activity in the sector.
There were a total of 1152 transactions in the upstream sector, marginally down 3% from 2011, but total announced transaction values were US$284b, up a significant 68% from the prior year.
Upstream deal values and volumes
Asset-led transactions continue to dominate over corporate transactions, accounting for 85% of total deals, with the number of corporate deals showing a marked 20% decline from 2011. Asset deals, either full exits or partial divestments, still offer an accessible means of raising capital for most companies.
On a regional basis, North America continued to lead transaction activity, with more than 52% of all announced deals, in line with 2011. Despite the dominance, the number of announced transactions in the US fell 18% from 2011 levels while Canadian transaction levels rose 20%.