Following the oil price collapse from mid-2014, a large number of companies — from private equity-backed vehicles, to the oil majors — have been scouring the market for deeply discounted oil and gas fields. But outside North America relatively few deals have actually been agreed.
So what opportunities are out there? In our latest perspective, we consider how the current market for conventional upstream assets presents companies with a chance to find the right opportunity.
M&A is booming in the US Lower 48, but that doesn't necessarily create an excess of cheap opportunities. Rather it suggests a sweet spot has been found between buyers, who see value (or need) in exposure to the L48 - and sellers, who see attractive exit options. There have, of course, been distressed sellers in the L48, but most companies have opted to restructure in Chapter 11, and when those assets do hit the market everyone knows about it.