Increased mergers and acquisitions in the oil sector

3001 2016
Despite the market volatility

Is expected to witness the oilfield services sector, a new wave of mergers and acquisitions during the year 2016, driven by efforts by industry players to take advantage of delinquencies, and increase its market share at the international level, in addition to have the new techniques, and that according to research carried out by the recently Pinsent Masons company, the world's leading law firm.

Participated in the survey of 200 senior executives working in the oilfield services sector companies, including 50 private investment company. The results of the survey that 86% of respondents expect a great activity in mergers and acquisitions over the next twelve months under the fluctuations in oil prices, while 70% indicated that they are studying in earnest to complete the acquisition during the current year.

The 74% of respondents orientation towards the expansion of their business operations abroad as the main motive behind this activity in mergers and acquisitions, while the predicted 70% of the participants desire to seize new opportunities to acquire distressed assets to drive deal activity. And looks 60% of the participants to seize opportunities depends on the ownership of new technologies. The technology involved in the most attractive and marine equipment sectors on the list of companies targeted companies.

Commenting on the sector during the research period, said General Manager of private property in the Middle East: "It is expected that the oilfield services sector conclude more cooperation agreements and mergers and acquisitions to help companies overcome the crises faced since the start of fluctuations in oil prices. It has become strategies companies rely on the conclusion of partnerships to enable them to enter new markets. "

He noted 59% of respondents to the ingredients that characterized the Southeast Asian countries has made them attractive areas, notably that their governments follow the investment-friendly policies, and the availability of advanced production areas. The 27% of respondents to the Middle East and North Africa region will capture the largest share of acquisitions over the next three years.

Many of the geographic areas and will join the list of the most popular countries targeted by the banks. Officials said about ten banks of the total major banks active in the oilfield services sector that the United States and Canada, which is witnessing the continuation of production as easily characterized by access to the banking sector, will continue to drive growth. However, the Middle East will witness a growing openness towards active in oil services abroad and that you need to finance the corporate sector.

Participants in the survey also pointed out that the UAE and Qatar Ttravan on the list of the top ten countries in the most attractive emerging markets, while Singapore, Mexico, Indonesia, China, Nigeria was on the list of the most popular countries with low ratings and the structure of the new strategy deals to offer lucrative investment opportunities on the back of continued volatility in oil prices.

John Yap, a partner at Pinsent Masons company in Hong Kong, said: "has become many of the traditional oil-exporting countries such as Indonesia, Malaysia and Thailand are imported. Testifies sector overall significant changes in light of the risks faced by emerging markets, and we see that the right time to attract investment to the region."

For his part, Bob Rodman, head of the energy department at Pinsent Masons, said: "The current scene is different from other situations of recession. We live in a more complex world where supply and demand and events geopolitical face the consequences can not be predicted. However, it is encouraging to see that there is a state of optimism in the sector in light of the efforts of oilfield services companies to find opportunities to meet the challenges. "

Said Jason Rozisck, an expert in the oil and gas sector in Pinsent Masons company: "confirms our research that the oil and gas sector is witnessing a shift, operating companies and investors to promote foreign and international Araudhathm, and show greater investment in the technology sector in preparation. Will see the Middle East region more efficient and attract technology what leads to acceptable margins. and will conclude a cooperation and partnerships with international oil services companies to enhance the cars from the Middle East agreements.
Al Raya 2016