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Global oil and gas sector valued at $270b

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The number of announced transactions which took place in the oil and gas sector worldwide in 2010 were valued at $270 billion, according to financial group Ernst & Young (EY).

The transactions include mergers and acquisitions in the sector.

EY reports that 947 deals were made known in 2010, with upstream activities dominating the landscape, accounting for 73% of transactions, adding, volumes were 5% higher than that of 2009.

“The total value of oil and gas transactions announced globally reached $270 billion in 2010”, EY’s global oil and gas transactions review 2010 said in a  news release published on its website.

It added, “This is 35% higher than the total for the previous year of $200 billion”

The group says rebounding crude prices and better capital availability provided a support to the increase in deal values with gas prices also representing an important driver in transaction activities in many regions.

EY disclosed that this year will see more of such mergers and acquisitions with Initial Public Offering (IPO) activity levels likely to rise and the role of upstream look set to remain the engine room of deal flow.

“2011 looks set to continue the themes of 2010 against the backdrop of gradually improving capital market conditions” said Andy Brogan, Global Oil and Gas Transaction Advisory Services Leader for Ernst & Young.

Downstream looks most susceptible to these near term trends and voluntary M&A activity could remain subdued in this sector while over-capacity in some regions continues, EY indicates.

 

By Ekow Quandzie

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