Q1 2011 Oil and Gas Mamp;A Hits $45 Billion: Shale Resources Dominate amp; BP signals Portfolio Shift
The value of deals announced reached $45 billion in the global Eamp;P sector during Q1 2011. A quarter in which the oil price broke through $100 per barrel on the back of increasing unrest in the North of Africa, and the world still clambered to get on board the movement towards shale resources. The total global upstream deal value of $45 billion is higher than all but three quarters over the past 3 years. That’s according to Evaluate Energy’s Global Mamp;A database (www.evaluateenergy.com) which tracks all global Eamp;P deals on a daily basis.
Shale Interest Drives North American Upstream Mamp;A
After taking a back seat to Latin America in Q3 2010, North America re-emerged as the key player in the global upstream Mamp;A sector with the majority of deals conducted there in the past two quarters. During Q1 2011 North America accounted for 45% of the deal value with over $20 billion worth of activity. Of this total 78% of the value came from shale resources. The largest shale deal during the quarter involved PetroChina entering the Canadian shale gas sector. PetroChina paid C$5.4 billion for a 50% interest in Encana’s Cutbank Ridge assets in the Montney...