10 Feb Oil and Gas deals increase to $395 billion in 2016
The total value of global oil and gas deals in 2016 reached US$395 billion, up from $340 billion in the previous year, despite volume of deals dropping by 27% year-on-year.
Deal value in North America increased to $76 billion over the last year, compared to $43 billion in 2015, according to the EY global oil and gas transaction review 2016.
Commodity deals remained subdued in other regions such as Africa and Australia, as global oil and gas firms endured difficult conditions during the first two quarters.
Andy Brogan, EY global oil and gas transactions leader, said: “Transactions took a back seat to the more urgent task of adapting to new economic realities in the sector last year.
“A number of deals were initiated but not completed amid ongoing volatility.
“Now, with the consensus throughout the sector that the worst is behind us, we’re starting to see a shift as companies realize that there may be a cost to inaction. We expect to see the momentum that began in the fourth quarter of 2016 continue in the year ahead.”
EY’s 2016 review painted a positive picture for oil and gas deals in 2017, particularly in areas such as South America, Africa, the Middle East and Asia, with upstream deal activity expected to rise.