Global upstream oil and gas M&A amounted to $13.5 billion

According to the news of Arab Trade on September 14, data analysis company GlobalData shows that mergers and acquisitions in the global oil and gas industry and financing activities in the upstream oil and gas industry surged to $130.5 billion in the second quarter, four times as much as $27.8 billion in the previous quarter.

The report says that in terms of volume, the number of transactions decreased slightly from 316 in the first quarter of 2009 to 315 in the second quarter of 2019.

Praveen Kumar Karnati, an oil and gas analyst at Global Data, said: "In the second quarter of 2019, 107 mergers and acquisitions were recorded in the traditional sector, with a total value of $21.1 billion; in the non-traditional sector, 44 transactions were recorded, with a total value of $62.3 billion."

He said that the transaction value of raising funds through stock issuance increased significantly, reaching $13 billion in the second quarter of 2019 and $1.5 billion in the first quarter of 2019.

He added that the number of stock issuance transactions also increased 19% from 88 in the first quarter of 2009 to 105 in the second quarter of 2019.

According to the report, the number of registered transactions increased by 48% in the second quarter of 2019 to 49, and the transaction value increased by 62% to US $28.8 billion, compared with 33 transactions in the last quarter, with a total value of US $17.8 billion.

In the second quarter of 2019, there were 10 private equity/venture capital transactions with a total value of $5.3 billion, while in the first quarter of 2019, there were 16 transactions with a total value of $1.3 billion. Karnati pointed out that the biggest M&A deal in the second quarter of 2019 was the acquisition of Anadarko by Western oil companies for $55 billion, including Anadarko's debt. Analysts pointed out: "By the end of 2018, the company's 1P proved reserves were about 667 million barrels of oil, 268 million barrels of natural gas condensate and 323 trillion cubic feet of natural gas. In 2018, the company produced about 140 million barrels of oil, 38 million barrels of natural gas condensate and 390 billion cubic feet of natural gas. The deal means daily production of $82,613.17 per barrel and 1P reserves of $37.33 per barrel.

One of the most important financing transactions in the second quarter of 2019 was Occidental Petroleum's agreement to issue 100,000 cumulative permanent preferred shares of 100,000 US dollars per share to raise total revenue of 10 billion US dollars.