The value of global oil and gas transactions increased in 2016 to $395 billion from $340 billion in 2015, a report by EY has shown.
EY, a global leader in tax, transaction and advisory services said in its transaction review 2016 report that while oil and gas deal value increased, volume fell by 27 per cent year-on-year.
It said global oil and gas deal activity in 2016 recovered from a slow start to the year with help from the announcements of midstream and oilfield services (OFS) megadeals.
EY Global Oil and Gas Transactions Leader Andy Brogan said with the volatility now almost over, there’s beginning to be a shift as companies realise 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,” he said.
Upstream deal value fell 14 per cent to $130bn in 2016 compared to $153bn in 2015; the report said noting, however, that upstream transaction activity improved in 2016, if the Shell and BG Group megadeal in 2015 was excluded.
“Downstream deal value increased by 30 per cent in 2016 to $65.9bn from $51.5bn in 2015 - more than double the average annual reported deal value (US$28.8bn) in the past five years,” Brogan said.
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