Trades involving partial company stakes accounted for 16% of total Global M&A activity in 2010, e.g., Cairn India, Gazprom, Lukoil

Global Oil and gas Corporate deals back to historic levels around 45%, down from 2009 high

Corporate deals as a share of the total was 45% in 2010, closer to the historic range 34-37% in 2007-2008 than 2009 at 74% (64% without the XOM-XTO deal).

 

Trades involving partial company stakes accounted for 16% of total Global M&A activity in 2010

The total value of trade involving partial company stakes in 2010 was $33bn, whereas the total deal value for such deals put together for previous three years (2009, 2008 & 2007) was only $5.2bn.  Main contributors to that figure was from 2 deals: OMV selling 21% stake in MOL to Surgutneftegas for $1.9bn (2009); and Repsol YPF divesting part of its  stake in the YPF unit to Petersen Group for $2.2bn (2007).

For more details look at http://www.derrickpetroleum.com/reports1.html

We have also recently published a report for E&P Business Development and New Ventures professionals working on deals globally. This report provides information on $93 billion of global oil and gas assets on the market.

The report provides details on ~500 opportunities:

• Assets for sale
• Corporate M&A opportunities
• JV opportunities
• Exploration farm-ins

You can view a sample copy of this report at http://www.derrickpetroleum.com/reports2.html

Conventionals are still conventional, accounting for 69% in 2010, up from 51% in 2009

Share of unconventionals in total deal value reduced from 49% in 2009 to 31% in 2010. However, a significant part of the unconventional deal value in 2009 was due to a single deal, the acquisition of XTO by ExxonMobil (unconventionals’ share without XTO would be 30%).

Number of deals greater than $1bn, both conventional and unconventional, were greater in 2010 than in any of the previous three years. Clearly the deal market was robust for both types of assets. 

Majors continued to acquire unconventional assets, but also got back into the conventional deals market

In 2010, the Majors bought conventional and unconventional assets in more balanced measures unlike 2009 when the Majors focused predominantly on unconventional assets. For 2010, the split was 35% conventionals/65% unconventionals based on the largest deals as show in chart.

The unconventional assets acquired by the Majors included

•       Marcellus: Shell-East Resources, Chevron-Atlas

•       Eagle Ford: Shell from various sellers, BP-Lewis Energy

•       Oil sands: Total-Suncor, Total-UTS, BP-Value Creation

•       Australia CBM: Shell-Arrow Energy, Total-Santos/Petronas

The conventional assets acquired by the Majors included

•       US (ExxonMobil-Ellora)

•       GoM: BP-Devon, BP-Shell, Chevron-Devon

•       Brazil: BP-Devon

•       Azerbaijan: BP/Chevron-Devon

•       Uganda: Total-Tullow

•       North Sea: BP-Total

For more details look at http://www.derrickpetroleum.com/reports1.html

We have also recently published a report for E&P Business Development and New Ventures professionals working on deals globally. This report provides information on $93 billion of global oil and gas assets on the market.

The report provides details on ~500 opportunities:

·         Assets for sale

·         Corporate M&A opportunities

·         JV opportunities

·         Exploration farm-ins

You can view a sample copy of this report at http://www.derrickpetroleum.com/reports2.html

US top region on its own, South America new number 2 for Oil and gas M&A activity

Top region for M&A activity is North America with $112bn or 53% of world total (including GoM). This activity level is almost 2 times the region’s share of global production and asset values. US has consistently been the top ranked region in terms of deal value transacted.

The second ranked region (after US) has been different each of the past few years – in 2007 it was Former Soviet Union as a result of the Yukos asset sell offs; in 2008 it was Australia because of the CBM LNG deals; in 2009 Canada took the position and in 2010 it is South America which has seen a massive step up in activity driven by Asian NOCs as well as OECD oil companies.

For more details look at http://www.derrickpetroleum.com/reports1.html

We have also recently published a report for E&P Business Development and New Ventures professionals working on deals globally. This report provides information on $93 billion of global oil and gas assets on the market.

The report provides details on ~500 opportunities:

·         Assets for sale

·         Corporate M&A opportunities

·         JV opportunities

·         Exploration farm-ins

You can view a sample copy of this report at http://www.derrickpetroleum.com/reports2.html

Unocal-II in 2011 - Will Chinese NOCs do a big acquisition in US in 2011?

Chinese/Asian NOCs acquisitions in 2010

Chinese/Asian NOCs were eager buyers in 2010, accounting for 19% of global activity, or $40bn, having grown steadily from 1% since 2007.  Key region was South America  with 4 of the top 5 deals, including Sinopec’s JV with Repsol, Brazil and CNOOC’s JV with Bridas for Pan American Energy.

In 2010, Chinese NOCs (Sinopec, CNOOC, CNPC, Sinochem and China Investment Corp) did acquisitions amounting to $34bn, Other Asian NOCs (KNOC & PTTEP) did acquisitions amounting to  $6bn.

Four of the top five deals by Chinese NOCs were in South America. Clearly this was their focus region for growth in 2010:

• Sinpopec bought 40% of Repsol’s Brazilian business, marking its entry into Brazil’s pre-salt resources. Among other assets, Sinopec now has an interest in the Guara and Carioca discoveries.
• CNOOC on the other hand grabbed a piece of mature producing assets in Argentina through the acquisition of a net 50% interest (through two deals) in Pan American Energy.
• Relatively smaller Sinochem, went after heavy oil by acquiring a 40% interest in Statoil’s Peregrino field offshore Brazil

Apart from South America, the Chinese also acquired assets in Canada, US, Angola, Australia, Uganda, Indonesia, and Colombia.

Chinese have restricted to JVs in US in 2010

Eagleford JV with Chesapeake was the only deal by Chinese NOCs in US.

So far Chinese have restricted to JVs and small acquisitions in US, will they be doing a corporate acquisition in 2011?

For more details look at http://www.derrickpetroleum.com/reports1.html

We have also recently published a report for E&P Business Development and New Ventures professionals working on deals globally. This report provides information on $93 billion of global oil and gas assets on the market.

The report provides details on ~500 opportunities:

·         Assets for sale

·         Corporate M&A opportunities

·         JV opportunities

·         Exploration farm-ins

You can view a sample copy of this report at http://www.derrickpetroleum.com/reports2.html

How much more do you think BP would sell as part of post-Macondo divestments - Which Assets ????

BP’s divestments for funding post-Macondo costs was a key driver of 2010 activity, accounting for  9% of the world total activity or ~$20bn. Key deals included Pan American Energy to CNOOC; assets in 3 countries to Apache. BP is likely to have more divestments planned, may be only half way to its target.

BP has announced plans to divest certain assets in North Sea and in Louisiana. BP could also consider divesting a part of its interest in ...............................................

For more details look at http://www.derrickpetroleum.com/reports1.html

We have also recently published a report for E&P Business Development and New Ventures professionals working on deals globally. This report provides information on $93 billion of global oil and gas assets on the market.

The report provides details on ~500 opportunities:

·         Assets for sale

·         Corporate M&A opportunities

·         JV opportunities

·         Exploration farm-ins

You can view a sample copy of this report at http://www.derrickpetroleum.com/reports2.html

http://docsearch.derrickpetroleum.com/research/q/Apache.html

At year end 2010, Global Oil & Gas Assets on the market at record high level of $93 billion

2010 global M&A deal flow set a record high of $211bn, above the historic highs  that occurred during most of 2007-2008.  Measured by number of transactions above $100m, 2010 had 3  of the most active quarters in recent history.

Value of Global E&P transactions (USD billion)

At year end 2010 future outlook is strong, deals in play, on the market amount to $93bn. This compares with $46bn at year beginning and only $20bn mid 2009.

$93 Bn Assets on the market

For more details look at http://www.derrickpetroleum.com/reports1.html

We have also recently published a report for E&P Business Development and New Ventures professionals working on deals globally. This report provides information on $93 billion of global oil and gas assets on the market.

The report provides details on ~500 opportunities:

·         Assets for sale

·         Corporate M&A opportunities

·         JV opportunities

·         Exploration farm-ins

You can view a sample copy of this report at http://www.derrickpetroleum.com/reports2.html

For more information on the topic, please write to rupesh.govindan@derrickpetroleum.com