M&A deal value in oil and gas sector rebounds in 2010: E&Y
07 Feb 2011
The total value of oil and gas transactions announced globally reached $270 billion in 2010, according to Ernst & Young's Global oil and gas transactions review 2010.
This is 35 per cent higher than the total vlue of deals amounting to $200 billion in the previous year.
Totally 947 deals were announced in 2010, with upstream continuing to dominate the landscape, accounting for 73 per cent of transactions. Volumes were 5 per cent higher than 2009.
Rebounding crude prices (Brent averaged $79.62/bbl in 2010 compared to $74.58/bbl in 2009) and better capital availability provided a support to the increase in deal values.
Gas prices, a victim of a robust supply position in a time of moderated demand, were not as strong but this dynamic also represented an important, driver of transaction activity in many regions.
Andy Brogan, global oil and gas transaction advisory services leader at Ernst & Young, says, ''As we predicted, 2010 was a healthier year for upstream and oilfield services transactions, whereas over-capacity in some regions drove a period of uncertainty and challenges in the downstream sector. There have however been diverse regional trends underlying this macro view. 2011 looks set to continue the themes of 2010 against the backdrop of gradually improving capital market conditions.''
