90 per cent of oil and gas executives see M&A scenario improving

Oil Rig MAImproving oil prices and production cuts from OPEC and Russia has driven confidence in dealmaking. (Image source: tsuda/Flickr)According to the EY Oil & Gas Global Capital Confidence Barometer (CCB), 90 per cent of oil and gas executives expect global mergers and acquisitions to improve in the next 12 months

This is a big increase from the 43 per cent figure from April 2017.

The CCB found that 62 per cent of oil and gas executives expect to undertake merger or acquisition deals in the next 12 months, higher than 52 per cent across industries.

"The latest EY Global Capital Confidence Barometer reveals that major broad indicators, such as oil price stabilization and continued growth in demand – coupled with discipline shown by OPEC and non-OPEC members – has instilled confidence in oil and gas dealmaking over the past six months. But with government policy becoming harder to predict across the globe, companies are mindful that any increases in protectionism could have an impact on the efficient flow of goods and services across the sector," Andy Brogan, EY Global Oil & Gas Transactions leader, said.

"Movement of assets is creating a robust oil and gas M&A market, and the focus on portfolio transformation has spurred activity and renewed confidence across the sector. Indeed, the latest EY Global Capital Confidence Barometer finds that 73% of oil and gas executives expect to complete more deals in the next 12 months compared with 37% just six months ago. It isn't surprising, therefore, that 74% expect their M&A pipeline to increase in the next year," Brogan, said.

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