BUYING AND SELLING
Oil and gas deal-making likely to speed up
An expected oil price recovery is likely to fuel a sharp rise in deal-making in 2017
London — A sharp pick-up in deal-making in the oil and gas sector in recent weeks had scope to accelerate as oil prices recovered, advisory company EY said in a report. While the number of deals in 2016 dropped 27% year on year, their value rose to $395bn from $340bn in 2015. The appetite for acquisitions grew after major oil-producing countries agreed in November to cut output, boosting prices and instilling confidence that a recovery was under way. ExxonMobil, BP, Total and Statoil all signed major deals in the past few weeks of 2016. On Tuesday, Royal Dutch Shell announced $4.7bn in asset sales, including a large chunk of its North Sea portfolio in what many analysts saw as a bellwether for mergers and acquisitions activity because of its relatively high operating costs. "Transactions took a back seat to the more urgent task to adapt to new economic realities in the sector last year. A number of deals were initiated but not completed amid ongoing volatility," Andy Brogan, EY glob...
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