Global upstream oil and gas assets are active

According to a Reuters report on October 4th in Mexico, Chevron said on the same day that it had signed an agreement with a subsidiary of Royal Dutch Shell to acquire a 40% stake in the company's three deepwater blocks in the Gulf of Mexico.

In the first half of this year, global upstream oil and gas assets M&A transactions were very active. Trade Arabia reported on September 14 that data from the data analysis company GlobalData showed that global upstream oil and gas acquisitions and financing lines soared to $130.5 billion in the second quarter, four times the $27.8 billion in the first quarter. In the first half of the year, the total transaction volume reached US$158.3 billion, and the number of transactions was 631. According to sources from Dow Jones, US upstream oil and gas M&A transactions in the second quarter amounted to $65 billion.

According to the July 19th US Petroleum Intelligence Weekly, there were nine oil and gas asset transactions of more than $1 billion in the second quarter, much higher than the two in the first quarter. It is the most active merger of larger oil and gas assets since the fourth quarter of 2017. Quarter.

GlobalData oil and gas analyst Praveen Kumar Karnati said: "In the second quarter, a total of 107 M&A transactions were completed in the conventional sector, with a total value of $21.1 billion; 44 transactions were completed in the unconventional field, with a total value of $62.3 billion." The value of equity financing transactions increased significantly, reaching $13 billion in the second quarter and $1.5 billion in the first quarter. The number of stock issuance transactions also increased from 88 in the first quarter to 105 in the second quarter.

According to the report, through the issuance of bond financing, the number of registered transactions in the second quarter increased by 48% to 49, the value of the transaction increased by 62% to $28.8 billion, and the number of transactions in the first quarter was 33, and the total value of the transaction was $17.8 billion. .

Karnati pointed out that the largest M&A transaction in the second quarter was the acquisition of Anadarko Petroleum by Western Oil Company for $55 billion, including the debt of Anadarko. One of the largest financing transactions in the second quarter was that Western Petroleum agreed to issue 100,000 cumulative permanent preferred shares at $100,000 per share to raise $10 billion.