Global oil and gas transactions review 2013

Oilfield services segment declining

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The average disclosed deal value fell from $244 million to $179 million, thus a continuous decline from the 2011 peak of $416 million.

Transaction activity in the oilfield services (OFS) sector declined in 2013, with 185 deals announced compared with 243 in 2012 and 201 in 2011. The considerable drop in accumulated deal value between 2012 and 2013 is a consequence of a combination of both a slowdown in deal activities among the global diversified oilfield services companies, as well as a general slowdown in deals in the usually vibrant and active OFS acquisition market in North America.

A considerable number of the transactions were related to the offshore market, where heavy assets deals dominated both within the support vessels category as well as in the mobile offshore drilling unit category. The Offshore service vessels related transaction accounted for 10% by deal count in 2013.

Top 10 OFS transactions in 2013 based on disclosed value

EY’s chart top 10 OFS transactions in 2013

Top 10 OFS transactions in 2013 based on disclosed value


EY’s chart top 10 OFS transactions in 2013

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We expect to see continuing focus on market positioning and capacity investment for the OFS industry, particularly for offshore exploration and production (both deep and ultra-deep), as well for unconventional development in North America, Australia, Latin America and China. Moreover, acquisition activity will also be driven by consolidations to capture scale of operations effects, for both asset-heavy and asset-light OFS companies.