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Thursday, January 7, 2010

$75 Billion of Oil and Gas Deals Announced Fourth Quarter 2009

6 Jan 2010 22:24 Africa/Lagos


$75 Billion of Oil and Gas Deals Announced Fourth Quarter 2009

PLS, Inc. reports tenfold increase in United States deal values propels global increase

HOUSTON, Jan. 6 /PRNewswire/ -- PLS, Inc. ("PLS") and international partner Derrick Petroleum Services ("Derrick") report that Global M&A activity for the 4th Quarter 2009 totaled nearly $75 billion in 172 separate deals, up from $21 billion in 112 deals in 3rd Quarter 2009. According to Brian Lidsky, Managing Director, Research, at PLS, "ExxonMobil's blockbuster $41 billion all-stock bid to buy U.S. unconventional resource leader XTO Energy took the market by surprise and marked a significant shift for the major back to North America onshore natural gas. The deal vaults ExxonMobil to the largest producer in the United States and gave the market and producers a large dose of confidence. U.S. gas prices have been in a slump for over a year. Shortly after the Exxon deal, French company, Total, struck a $2.25 billion JV with Chesapeake in the Barnett shale of Texas."


(Logo: http://www.newscom.com/cgi-bin/prnh/20100106/DA33469LOGO)


Continuing the momentum in E&P transactions which began in August 2009 with oil prices stabilizing in the $75 range, the 4th Quarter 2009 witnessed ten deals struck globally topping the $1 billion threshold; eight for oil, two for gas. Of the ten deals, four were in the U.S., one in Canada, three in Africa and two in Asia.


In the quarter (see Table 1), the U.S. led all countries in activity with $53.4 billion, followed by Canada ($7.2B), Ghana ($4.0B), Kazakhstan ($2.1B), Turkmenistan ($1.9B), Uganda ($1.5B), and Angola ($1.3B).


In Ghana, media reported ExxonMobil making a $4 billion bid for Kosmos Energy's stake in the offshore Jubilee field. Observers report the deal remains in limbo as the Ghana National Petroleum Company is reportedly in talks with the Chinese. The deal is indicative of the changing nature of the international oil industry.

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