Global Upstream M&A - 2013 in review, and the outlook for 2014
Portfolio restructuring remains a strategic priority for many of the big IOCs. Under shareholder scrutiny and nervous about oil prices, value over volume is the mantra. The group will remain net sellers in 2014. This should keep the asset market well stocked. Our Deal Pipeline currently contains 270 potential transactions worth a combined US$310 billion. Good news for buyers: the NOCs and SWFs – alongside other, niche players – will continue to underpin the market.
The IOCs are likely to be net sellers again in 2014. A continued focus on value over volume, and on developments rather than acquisitions, will ensure that they maintain a relatively aggressive approach to portfolio high grading. As at start 2014, our Deal Pipeline contained over US$90 billion worth of potential disposals from the Majors, Large and Mid Caps.