opportunities in natural resources · key upstream m&a trends in 2013 global oil & gas...
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Opportunities In Natural Resources
IFLR Asia M&A Forum 2014
Andrew Abernethy – Akin Gump
Stephen D Davis – Akin Gump
Garth Briffa – Santos Ltd
Adi Karev – Deloitte Touche Tohmatsu
Anthony Carango – Nomura
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1. Review of M&A activity 2012/13: What are the trends?
2. Challenges and Opportunities in Resource Deals?
3. Unconventional Oil & Gas: A Regional or Global Resource?
4. LNG: Where is it going?
5. National Oil Companies & Private Equity Funds: What are they buying now?
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Outline
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1. Review of M&A activity 2012/13: What are the trends?
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Key upstream M&A trends in 2013
Global oil & gas M&A: Review of 2013
Global upstream M&A in 2013 totaled US$128bn, down 47% year-on-year. Although gross spend was lower, driven by a
fall in corporate M&A, the upstream asset market performed well with spend and deal flow close to record highs
Independent Oil Companies (“IOCs”) were net sellers of upstream assets in 2013, driven by increasing focus on shareholder returns
Near-term asset development projects taking precedent over M&A
Acquisitions are a low priority for IOCs in the current market due to several factors:
– Major near-term capital commitments; tight cash flow; stretched balance sheets; returns under pressure; heightened investor
scrutiny
Asian National Oil Companies (“NOCs”) accounted for 25% of global upstream M&A in 2013
Chinese led for the 5th consecutive year (c.US$20bn of transactions)
Large scale outbound M&A to continue in 2014 as Asian NOCs have the financial capacity to continue to pursue aggressive
acquisitive growth
The prolific growth expected in global LNG demand (led by Asia) continued to be an important driver of upstream M&A transactions in
2013
Investors have shifted focus towards East African and North American projects in recent years, leaving Australian LNG M&A at its
lowest levels since 2007 (saw only two transactions in 2013 for a disclosed consideration of less than US$0.4bn)
East Africa was the hotspot for LNG spend in 2013, with US$10.0bn of transactions
– Asia drove activity as CNPC, ONGC and Oil India spent US$9.3bn in Mozambique
Unconventional deal spend slowed significantly due to low levels of activity in unconventional gas driven by weak pricing dynamics
– Tight oil was the key focus of unconventional M&A in 2013
M&A activity will remain subdued in 2014 as the fight for large entry positions in Northern American tight oil plays is expected to be
largely over. Deals will be driven by smaller firms looking for break-out growth, and from play specialists looking to consolidate in core
areas. Weak gas prices will suppress shale gas M&A
IOC portfolio
realignment 1
Asian NOCs as
core buyers 2
Globalization
of LNG M&A 3
Subdued deal
activity in
unconventional
4
1
3
2013 global upstream M&A spend by primary deal location and buyer type
Global upstream deal activity in 2013
Source: Wood Mackenzie.
North America continues to be the largest upstream M&A market globally, however deal spend fell considerably in
2013 due to muted M&A activity in shale gas
0
20
40
60
80
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(US$bn
)
Shale Gas Tight Oil Other
Mid cap Large Cap Major NOC Other
Russia & Caspian
US$30.5bn
North America
US$55.3bn Europe
US$4.5bn
Latin America
US$9.4bn
Africa
US$20.5bn
Asia Pacific
US$7.6bn
North American unconventional M&A spend
2
Top 15 buyers and sellers in 2013
IOC portfolio realignment drove significant
divestment activity by Western based companies
IOC aggregate M&A spend of US$17bn in 2013 was less than any prior year on record1, causing the group to rank as
net sellers for the second consecutive year driven by US$43bn of aggregate disposals
(15)
(10)
(5)
0
5
10
15
Net M&A spend (US$bn)
■ Western headquartered company
Note: 1) Based on Wood Mackenzie analysis.
Source: Wood Mackenzie.
Developed market companies led 11 of the 15 largest
disposals in 2013, highlighting a focus on value over
volume
3
4
NOC overseas M&A by buyer country
Chinese NOCs remained the biggest M&A
participants
Source: Wood Mackenzie.
Asian NOCs remained the core buyers of large assets in the global market, accounting for 25% of global upstream
M&A in 2013. Chinese NOCs led the pack for the fifth consecutive year with c.US$20bn of transactions
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
2005 2006 2007 2008 2009 2010 2011 2012 2013
China Other Asia Middle East Latin America FSU Africa Other NOC Global M&A (%)
M&A spend (US$bn) (%)
4
Financial buyer deal activity in 2013
Financial buyers invested c.US$22bn1 in O&G deals during 2013 – down c.45% from 2012, which was a record year for
private investment in the sector. Deal activity was predominantly focused on US upstream opportunities
Regional deal spend in 2013 – North America led the way
Upstream dominates M&A spend by financial buyers
42%
24%
11%
13%
7% 3% 0%
North America Europe APAC
Globally diversified MENA Latin America
Russia/Caspian
M&A spend by region North America M&A spend breakdown
83%
15% 2%
USA Diversified Canada
69%
26%
5% 0%
Upstream Midstream OFS Downstream
M&A spend by sub-sector Upstream M&A spend breakdown
40%
16%
12%
10%
7%
7% 7% 1%
Diversified Shallow Water Shale Gas Deepwater
Shale Oil Unconventional Conventional Tight/Shale Oil
Note: 1) Includes deals with disclosed transaction values by private equity firms and sovereign wealth funds.
Source: IHS Herold.
2013
US$22bn
5
5
-
2
4
6
8
10
12
-
500
1,000
1,500
2,000
2,500
2005 2006 2007 2008 2009 2010 2011 2012 2013
Trading house Operator Utility Deal count
% of global LNG M&A spend
Japanese trading companies actively invested in
energy value chain
Source: IHS Herold. Company disclosure.
1. Global M&A transactions include upstream, midstream, downstream and OFS sector. Also includes deal type of acquisitions, swaps, mergers, and joint ventures with disclosed value.
Trading companies have been increasingly acquisitive in oil and gas since 2009, however constitute a small portion of
global oil and gas M&A
Global M&A transactions by trading companies1 Top 15 recent transactions by trading companies
Japan overseas LNG acquisition spend by buyer type
Date
Announce
d
Acquirer Name Target Name Deal Value
(USD mn)
Energy
transaction
2012/05/29 Marubeni Corp Gavilon Group LLC 5,600
2011/11/09 Mitsubishi Corp Anglo American Sur SA 5,390
2012/03/30 Investor Group (Marubeni) Roy Hill Holdings Pty Ltd 3,309
2012/05/01 Japan Australia LNG
(Mitsui & Mitsubishi)
Woodside Browse Ltd-
Browse LNG 2,000
2011/03/03 Investor Group (Sojitz) CBMM 1,950
2010/06/30 Sumitomo Corp Mineracao Usiminas SA 1,930
2011/11/23 Investor Group (Itochu) Samson Investment Co 1,800
2011/08/08 Hunter Valley Resources
Pty (Mitsubishi) Coal & Allied Industries Ltd 1,612
2011/06/16 Itochu Corp Drummond Co Inc-
Colombian 1,524
2010/02/16 Mitsui E&P USA LLC Anadarko Petro Corp-
Shale Asts 1,500
2013/06/20 Itochu Corp; Mitsui & Co
Ltd
BHP Iron Ore (Jimblebar)
Pty Ltd 1,500
2012/02/17 Mitsubishi Corp EnCana Corp-Cutbank
Ridge 1,456
2011/10/12 Malt LNG Holding ApS
(Marubeni) Maersk LNG A/S 1,402
2012/08/01 Sumitomo Corp Devon Energy Corp-Shales 1,400
2012/08/23 Inversiones Mineras Acrux
SpA (Mitsui) Anglo American Sur SA 1,100
- - 17.3% 5.5% 1.7% 5.8% 6.5% 8.5% -
0
2,000
4,000
6,000
8,000
10,000
2005 2006 2007 2008 2009 2010 2011 2012 2013
North America Europe Australasia Asia Latin America Russia/Caspian Middle East Africa Globally diversified
% of global M&A spend
0.9% 1.2% 1.1% 0.7% 0.1% 1.6% 2.9% 3.2% 2.7%
US$mm
US$mm Deal count
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2. Challenges and Opportunities in Resource Deals?
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Company Strategy
Below Ground Considerations
Economics &
Commercialisation Paths
Social License to Operate
Stable Regulatory Regime
Technical Capability
DD Risk
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Company Strategy
• Needs to fit with company direction
• Directed from “the top”
• May not fit – country, risk appetite, investors views, cost environment ...
Below Ground/Resources
• Is area prospective?
• Resources economic to develop
• Sufficient volume
• What is the risk?
• Technical challenge
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Economics
• Need market sufficient to allow appropriate investment
• Can be local or in some cases needs to be OS market
• Forecast demand
• Underpinning contracts
• Needs to be profitable venture
• Even if resources - may not be economical
• Commercialisation paths
Social License to Operate
• Government and community need to be supportive
• Company track record and country presence are important
• In frontier opportunities may need to educate and assist to develop regime etc.
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Stable Regulatory Regime
• Need regime that is workable/supportive
• Environmental, tax, foreign investment, O&G, domestic reservation, local content etc.
• Don’t want “playing field” to be changed along the way
• PSC or concessionary regime?
• Investment Treaty Protection
Technical Capability
• Need skills/expertise
• Need service industry
• Need infrastructure – existing/new
• Is it technically difficult?
• Is a partner required for technical capability and/or risk share?
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Due Diligence Risk
• Appropriate due diligence will allow educated decision
• Critical to do prior to investment
• Challenges able to be taken into account
• Technical, Legal, Financial, Environmental, Tax …
• Ethical conduct of high importance
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General:
• Corruption/Transparency • Government Approvals • Political Stability • Expropriation • Legacy Issues • Abandonment Obligations • Lack of attractive
opportunities/companies holding prized assets
• Resource Nationalism • Border Issues • Cautious Buyers • Generally old well explored basins
in Asia • Energy Hungry NOC’s competing • Historical Royalties
JV Partner:
• Safety
• Disputes/Agendas/Alignment
• Funding
• Partner Consents
• Local Partner Requirements
Operational:
• License Requirements/Work Program
• Environmental Requirements
• Potentially High Cost Environment
• Need to consider frontier exploration and
methodology
• May need to consider assets outside comfort
zone
• High Cost/High Risk Industry
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3. Unconventional Oil & Gas: A Regional or Global Resource?
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©2013 Deloitte Global Services Limited All rights reserved
Shale gas
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Top 10 countries in the world with technically recoverable shale gas resources
Source: EIA
Largest reserve in China
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©2013 Deloitte Global Services Limited All rights reserved
Shale gas
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Our view
• Shale gas will continue to be a largely regional
resource with only a limited impact on global
markets.
• Despite North American shale gas revolution,
other countries must overcome more challenging
geology, and gaps in technology, infrastructure
and domestic service capability before
commercial production can begin
• Low per capita gas reserves and rising domestic
demand are long-term limitations for the export
potential of some countries
Impacts on Asia
• China has significant shale gas reserves but will
unlikely be an exporter due to domestic demand
• Shale highlights the opportunities to grow
regional technical capability and services
industry
• US shale gas exported as LNG to Asia will be
predominant regional impact
• Little-to-no E&P
activity
• Poland (current)
• Target testing
of basins
• Subsidies to
promote E&P
• China (current)
Dormant
Nascent
Incubator
Decoupler
Globalizer
• Commercial
volumes of
shale produced
• Argentina
(current)
• “Supply shock”
impact on gas
prices vs. oil
prices
• Large capex to
scale production
• Argentina
(outlook)
• Export capability
due to sufficient
volumes relative
to domestic
demand
• US (current/
outlook)
Stages of Development for Shale Gas
A global or regional resource?
©2013 Deloitte Global Services Limited All rights reserved
Shale gas
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Outlook for major shale resource countries
Country EIA
Resource
Estimate
(Tcf)
Services
Industry
Pipeline
Network
Water
Access
Geological
Complexity
Gas
Reserve
/ Capita
(Mcf)
Shale % of
natural
gas
production
Outlook
Argentina 802 330 <5%
• Success during the Nascent stage is
driving investments needed as an
Incubator
• Maintaining a favorable investment
climate is needed to become a
Decoupler
China 1,115
(886)* 70 <3%
• International partnerships needed to
overcome geological complexity
• Services sector needs shale
experience and water is a concern
• Unlikely to be a Globalizer
Poland 148
(12-27)** 70 N/A
• Stable investment climate needed to
reinvigorate investments
• Must demonstrate commercial
viability of its shale
• Unlikely to be a Globalizer
United
State 665 1,333 >20%
• Poised to be a Globalizer with LNG
exports
• Government export approvals are
determining factor
= low barrier = moderate barrier = high barrier * Ministry of Land and Resources (China) estimate
** Polish Geological Institute (Poland) estimate
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4. LNG: Where is it going?
105995529
© 2013 Akin Gump Strauss Hauer & Feld LLP
• LNG (Liquefied Natural Gas) (U.S. and Canada)
• Petroleum Products
• LPG (Liquefied Petroleum Gases)
• Crude Oil?
and that’s without mentioning pipeline natural gas, coal, gas-to-liquids, petrochemicals…!
THE UNITED STATES AS AN ENERGY EXPORTER
Stephen D. Davis, Partner [email protected]
+1 713.220.5888
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Company Quantity (a) FTA Applications (b)
(Docket Number) Non-FTA Applications (c)
(Docket Number)
Sabine Pass Liquefaction, LLC 2.2 billion cubic feet per day (Bcf/d) (d)
Approved (10-85-LNG) Approved (10-111-LNG)
Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC
1.4 Bcf/d (d) Approved (10-160-LNG) Approved (10-161-LNG)
Lake Charles Exports, LLC 2.0 Bcf/d (e)* Approved (11-59-LNG) Approved (11-59-LNG)
Carib Energy (USA) LLC 0.03 Bcf/d: FTA 0.01 Bcf/d: non-FTA (f)
Approved (11-71-LNG) Under DOE Review (11-141-LNG)
Dominion Cove Point LNG, LP 1.0 Bcf/d: FTA 0.77 Bcf/d: non-FTA
Approved (11-115-LNG) Approved (11-128-LNG)
Jordan Cove Energy Project, L.P. 1.2 Bcf/d: FTA 0.8 Bcf/d: non-FTA (g)
Approved (11-127-LNG) Under DOE Review (12-32-LNG)
Cameron LNG, LLC 1.7 Bcf/d (d) Approved (11-145-LNG) Approved (11-162-LNG)
Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC (h)
1.4 Bcf/d: FTA 0.4 Bcf/d: non-FTA (k)
Approved (12-06-LNG) Approved (11-161-LNG)
Gulf Coast LNG Export, LLC (i) 2.8 Bcf/d(d) Approved (12-05-LNG) Under DOE Review (12-05-LNG)
Gulf LNG Liquefaction Company, LLC 1.5 Bcf/d(d) Approved (12-47-LNG) Under DOE Review (12-101-LNG)
LNG Development Company, LLC (d/b/a Oregon LNG)
1.25 Bcf/d(d) Approved (12-48-LNG) Under DOE Review (12-77-LNG)
SB Power Solutions Inc. 0.07 Bcf/d Approved (12-50-LNG) n/a
Southern LNG Company, L.L.C. 0.5 Bcf/d(d) Approved (12-54-LNG) Under DOE Review (12-100-LNG)
Excelerate Liquefaction Solutions I, LLC 1.38 Bcf/d(d) Approved (12-61-LNG) Under DOE Review (12-146-LNG)
Golden Pass Products LLC 2.6 Bcf/d(d) Approved (12-88 -LNG) Under DOE Review (12-156-LNG)
Cheniere Marketing, LLC 2.1 Bcf/d(d) Approved (12-99-LNG) Under DOE Review (12-97-LNG)
Main Pass Energy Hub, LLC 3.22 Bcf/d** Approved (12-114-LNG) n/a
CE FLNG, LLC 1.07 Bcf/d(d) Approved (12-123-LNG) Under DOE Review (12-123-LNG)
Waller LNG Services, LLC 0.16 Bcf/d Approved (12-152-LNG) n/a
Pangea LNG (North America) Holdings, LLC 1.09 Bcf/dd Approved (12-174-LNG) Under DOE Review (12-184-LNG)
Applications Received by DOE/FE to Export Domestically Produced LNG
from the Lower 48 States (as of February 20, 2014)
Stephen D. Davis, Partner [email protected], +1 713.220.5888
Chart generated by U.S. Dept. of Energy at http://energy.gov/sites/prod/files/2014/02/f8/Summary%20of%20LNG%20Export%20Applications.pdf
Applications Received by DOE/FE to Export Domestically Produced LNG
from the Lower 48 States (as of February 20, 2014)
*Lake Charles Exports, LLC (LCE) and Trunkline LNG Export, LLC (TLNG), the owner of the Lake Charles Terminal, have both filed an application to export up to 2.0 Bcf/d of LNG from the
Lake Charles Terminal. The total quantity of combined exports requested between LCE and TLNG does not exceed 2.0 Bcf/d (i.e., both requests are not additive and only 2 Bc/f d is included
in the bottom-line total of applications received.)
** Main Pass Energy Hub, LLC (MPEH) and Freeport McMoRan Energy LLC (FME), have both filed an application to export up to 3.22 Bcf/d of LNG from the Main Pass Energy Hub. (The
existing Main Pass Energy Hub structures are owned by FME). The total quantity of combined FTA exports requested between MPEH and FME does not exceed 3.22 Bcf/d (i.e., both requests
are not additive and only 3.22 Bcf/d is included in the bottom-line total of FTA applications received). FME’s application includes exports of 3.22 Bcf/d to non-FTA countries and is included in
the bottom line total of non-FTA applications received, while MPEH has not submitted an application to export LNG to non-FTA countries.
Stephen D. Davis, Partner
[email protected], +1 713.220.5888
Chart generated by U.S. Dept. of Energy at http://energy.gov/sites/prod/files/2014/02/f8/Summary%20of%20LNG%20Export%20Applications.pdf
Company Quantity (a) FTA Applications (b)
(Docket Number) Non-FTA Applications (c)
(Docket Number)
Magnolia LNG, LLC 0.54 Bcf/d(j) Approved (12-183-LNG) n/a
Trunkline LNG Export, LLC 2.0 Bcf/d* Approved (13-04-LNG) Under DOE Review (13-04-LNG)
Gasfin Development USA, LLC 0.2 Bcf/d(d) Approved (13-06-LNG) Under DOE Review (13-161-LNG)
Freeport-McMoRan Energy LLC 3.22 Bcf/d** Approved (13-26-LNG) Under DOE Review (13-26-LNG)
Sabine Pass Liquefaction, LLC 0.28 Bcf/d(d) Approved (13-30-LNG) Under DOE Review (13-30-LNG)
Sabine Pass Liquefaction, LLC 0.24 Bcf/d(d) Approved (13-42-LNG) Under DOE Review (13-42-LNG)
Venture Global LNG, LLC 0.67 Bcf/d(d) Approved (13-69-LNG) Under DOE Review (13-69-LNG)
Advanced Energy Solutions, L.L.C. 0.02 Bcf/d Approved (13-104-LNG) n/a
Argent Marine Management, Inc. 0.003 Bcf/d Approved (13-105-LNG) n/a
Eos LNG LLC 1.6 Bcf/d(d) Approved (13-115-LNG) Under DOE Review (13-116-LNG)
Barca LNG LLC 1.6 Bcf/d(d) Approved (13-117-LNG) Under DOE Review (13-118-LNG)
Sabine Pass Liquefaction, LLC 0.86 Bcf/d(d) Approved (13-121-LNG) Under DOE Review (13-121-LNG)
Delfin LNG LLC 1.8 Bcf/d Pending Approval (13-129-LNG) Under DOE Review (13-147-LNG)
Magnolia LNG, LLC 0.54 Bcf/d: FTA(j)
1.08 Bcf/d: Non-FTA(j)
Pending Approval (13-131-LNG) Under DOE Review (13-132-LNG)
Annova LNG LLC 0.94 Bcf / d Pending Approval (13-140-LNG) n/a
Texas LNG LLC 0.27 Bcf /d(d) Pending Approval (13-160-LNG) Under DOE Review (13-160-LNG)
Total of all Applications Received 38.23 Bcf/d(*)(**) 35.58 Bcf/d (*)(**)
13
Applications Received by Canada National Energy Board to Export
Domestically Produced LNG (as of February 20, 2014)
Company Application
Status
Term
Length
License Issued Total Volume* (Tcf) *Refers to volume amount
over the length of license
Daily Volume
(Bcf)
KM LNG Operating
General Partnership
Approved 20 years Yes 9.4 1.3
BC LNG Export
Cooperative LLC
Approved 20 years Yes 1.7 0.2
LNG Canada
Development Inc.
Approved 25 years Yes 32.9 3.2
Pacific NorthWest
LNG Ltd.
Approved 25 years No 24.5 2.7
WCC LNG Ltd. Approved 25 years No 38.9 3.9
Prince Rupert
LNG Exports
Limited
Approved 25 years No 29.6 2.9
Woodfibre LNG Export
Pte. Ltd.
Approved 25 years No 2.6 0.3
Jordan Cove LNG L.P. Under review 25 years N/A N/A N/A
Triton LNG Limited
Partnership
Under review 25 years N/A N/A N/A
Pieridae Energy Ltd. Under review 20 years N/A N/A N/A
Aurora Liquefied Natural
Gas Ltd.
Under review 25 years N/A N/A N/A
Kitsault Energy Ltd. Under review 25 years N/A N/A N/A
Oregon LNG Marketing
Company LLC
Under review 25 years N/A N/A N/A
Information from Canada National Energy Board and Natural Gas Intel at http://www.naturalgasintel.com/articles/96789-four-new-lng-export-approvals-brings-canadian-total-to-145-bcfd 24
Finished Petroleum Products Exported from the United States
Stephen D. Davis, Partner [email protected]
+1 713.220.5888
25
14
Liquefied Petroleum Gases (Ethane/Ethylene, Propane/Propylene, Butane/Butylene, Isobutane/Isobutylene) Exported from the United States
Stephen D. Davis, Partner [email protected]
+1 713.220.5888
26
United States Exports of Crude Oil and Petroleum Products
Stephen D. Davis, Partner [email protected]
+1 713.220.5888
27
15
United States Exports of Crude Oil Only
Stephen D. Davis, Partner [email protected]
+1 713.220.5888
28
United States Oil Production and Imports
Source: http://energy.gov/articles/us-domestic-oil-production-exceeds-imports-first-time-18-years Stephen D. Davis, Partner [email protected], +1 713.220.5888
16
30
5. National Oil Companies and Private Equity Funds: What are they buying now?
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©2013 Deloitte Global Services Limited All rights reserved
M&A players in the industry
31
Top 10 M&A deals in Oil & Gas in 2013
Buyer: Fieldwood Energy
Seller: Apache
Asset value: $3.75b
Asset type: GoM shelf assets
Buyer: Linn Energy
Seller: Berry Petroleum
Asset value: $4.3b
Asset type: Corporate M&A
Buyer: Bradinor, Cromeld
Seller: Sistema
Asset value: $3.7b
Asset type: Corporate stake of
RussNeft
Buyer: Rosneft
Seller: Itera
Asset value: $2.9b
Asset type: Corporate M&A
Buyer: Sinopec
Seller: Apache
Asset value: $3.1b
Asset type: conventional O&G
Buyer: OMV
Seller: Statoil
Asset value: $2.65b
Asset type: North sea oil field
Buyer: Lukoil
Seller: Hess
Asset value: $2.05b
Asset type: Corporate stake of
Samara-Nafta
Buyer: Rosneft
Seller: Enel Spa
Asset value: $1.8b
Asset type: Corporate
stake of SeverEnergia
Buyer: Devon Energy
Seller: GeoSouthern Energy
Asset value: $6b
Asset type: Shale assets
Buyer: CNPC
Seller: ENI
Asset value: $4.2b
Asset type: offshore gas field
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©2013 Deloitte Global Services Limited All rights reserved
M&A players in the industry
32
What are the major players buying?
National Oil
Companies
International
Oil Companies
Private Equity
Funds
• In 2013, 5 of the top 10 M&A deals involved NOCs (including Russian NOCs).
• After favoring unconventional assets in recent years, Chinese NOCs are re-
focusing on conventional assets, which is easier and faster to produce.
• For Chinese NOCs, oil is the immediate need and gas is the future.
• NOCs will continue to invest heavily in R&D and expand in service capabilities.
• While NOCs are expanding globally through M&A transactions, IOCs are focusing
more on the core assets / capabilities and divesting non-core business
• IOCs are paying attention to operational efficiency, cost control, and financial risk
sharing arrangements.
• In 2013, 2 of the top 10 M&A deals involved private funds.
• PE firms also invested big amount in infrastructure in Latin America in 2013 (Advent
International acquired a minority stake in Colombia’s Ocensa oil pipelines for
US$1.1 billion).
©2013 Deloitte Global Services Limited All rights reserved
M&A players in the industry
33
Non-traditional players
• Non-traditional players include utility companies, banks and trading companies
• Asian utility companies are taking equity stakes in E&P
• Mitsubishi Corporation has majority stake in Indonesia's Donggi-Senoro liquefied
natural gas (LNG) project
• Chinese power generator China Huadian seeks to invest in Canadian LNG project
after it won exploitation rights for five shale gas regions in China
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Ten Bishops Square
London E1 6EG
United Kingdom
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Al Maryah Island, P.O. Box 55069
Abu Dhabi, United Arab Emirates
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Austin, TX 78701-3911
Tel. 1. 512.499.6200
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Twin Towers (East)
B12Jianguomenwai Avenue
Beijing 100022, China
Tel. 86.10.8567.2200
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Dallas, TX 75201-4624
Tel. 1. 214.969.280
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1206 Geneva, Switzerland Tel. 41.22.787.40000
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Edinburgh Tower
The Landmark
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Central, Hong Kong
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