Oman, UAE and Iraq lead ME oil, gas transactions $3.1b

Times News Service MUSCAT: The combined oil and gas transactions in the UAE, Oman and Iraq represented almost 60 per cent of the total number of upstream transactions in the Middle East. Overall, the actual number of transactions in the region fell by 40 per cent, from 44 in 2012 to 26, in 2013, whereas the overall transaction value increased from $2.7 billion in 2012 to $3.1 billion in 2013, according to Ernst & Young’s Global Oil & Gas Transactions report.

Rapid-growth markets

“Rapid-growth markets have been, in recent years, the engine room of the world’s economic growth. This indicated brighter prospects for oil and gas companies, making it attractive for them to invest in regions such as the Middle East to spur such growth,” said Dr. Thorsten Ploss, Mena Oil & Gas Leader of EY.

Relative to overall oil and gas Was the overall oil and gas transaction value in 2013, against $2.7 billion in 2012

in the region transaction activity, the upstream sector dominated both in terms of number and overall transaction value in 2013.

Relative to the total global upstream transaction value, the Middle East upstream transaction value witnessed an upward trend increasing from 0.8 per cent in 2011 to 1.5 per cent in 2012 and 1.8 per cent in 2013.

In the downstream sector, there were five transactions, of which two were in the petrochemicals sector. This is a similar level of activity that we have seen in previous years. Within the Middle East refinery sector, there are a number of potential greenfield and brownfield (upgrading and expansion) projects that could drive some transaction activity going forward.

“There has been a recent announcement that Occidental Petroleum is looking to sell a minority stake in their Middle East oil and gas business. If this sale is to proceed, then it would represent a substantial transaction in the context of the Middle East market,” added David Baker, Mena Oil & Gas Transaction Advisory Services Leader.

Oilfield services

Oilfield services transactions remain low in the region with only five transactions completed in 2013 with three of these being located in the UAE. However, this is more than two transactions completed in 2011 and three in 2012. One significant potential transaction in the region involved NPS Energy that recently put itself back up for sale after a prior sales process fell through.