Indonesia’s Medco Energi (IDX:MEDC) is on the lookout for more merger and acquisition (M&A) opportunities in Southeast Asia after successfully buying ConocoPhillips Indonesian assets in a $1.355 billion deal struck last year.
More merger and acquisition (M&A) opportunities are expected to hit the market in Asia Pacific, as international oil companies (IOCs) continue to rationalise their portfolios, and ESG concerns trigger further divestments. This will help to unlock the deal flow in APAC, but potential acquirers could struggle to secure necessary finance without a strong ESG narrative.
CNOOC has brushed aside recent media reports that the firm is considering withdrawing from oilfield investments in the UK North Sea, the US and Canada.
The deal volume for renewable energy assets in Asia more than tripled to $13.6 billion in 2021, as the number of transactions surged by 53% year-on-year to 75. Significantly, large corporate mergers in the solar energy sector fuelled the considerable increase in value, reported Enerdatics, a research company.
It’s set to be an action-packed year for majors, independents and national oil companies (NOCs) alike in 2022. Big choices will set strategic trajectories for the energy transition ahead and the M&A market is set to heat up with multi-billion dollar acquisitions on the horizon, reports energy research company Wood Mackenzie.
Mukesh Ambani’s Reliance Industries (NSE:RELIANCE) acquired a Norwegian solar panel maker and an Indian builder of renewable projects in a bid by the oil-to-retail conglomerate to extend its dominance into alternative energy.
Thai upstream player PTT Exploration and Production (PTTEP) plans to keep acquiring new production assets in the Middle East and Southeast Asia to boost reserves and bolster sales.
Bass Oil is seeking Australian upstream acquisition opportunities, which are largely being ignored by the market amid the energy transition, to complement its increased activities in Indonesia.
Innovation will be increasingly important to companies trying to do deals in the North Sea once prices start to rebound, CMS’ managing partner in Aberdeen, Norman Wisely, has said.
A new North Sea firm, created by the former bosses of Faroe Petroleum, has announced it is evaluating "a number" of potential acquisition targets.
RockRose Energy has announced it will press on with the hunt for more North Sea acquisitions this year.
Mega deals came back into fashion in the City last year, with chief executives becoming more confident as the drama of the financial crisis faded into the background. Mergers and acquisition activity involving UK firms jumped almost 63% to $565billion, a 15-year high involving 3,385 deals, according to data firm Dealogic. The biggest of these acquisitions saw London-listed Peroni and Grolsch group SABMiller bought by Budweiser brewer Anheuser-Busch InBev for £71 billion in a deal finalised last month.
Total's chief executive said oil majors are well positioned to grow during the oil price downturn but should "be patient" when it comes to mergers and acquisitions. Patrick Pouyanne made the comments after it was revealed Anadarko had become the latest company to launch a takeover bid for Apache, following in the steps of Shell and BG and Halliburton and Baker Hughes.