• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 3 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 14 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 9 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 6 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 2 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 9 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 10 days Goldman Betting on Cryptocurrencies
  • 13 days Сryptocurrency predictions
China Covid Protests Weigh On Oil

China Covid Protests Weigh On Oil

Growing protests in China against…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Is This The First In A Slew Of Megadeals In Oil?

Oil prices have shown some weakness lately. With WTI slipping below $48 per barrel — after briefly topping $50 at the end of July. 

But even at that level, crude has now been relatively stable for over a year — trading between the low 40s and low 50s. 

And that predictability is bringing back petro-M&A. 

That included a mega-deal this week by one of the world’s largest oil companies. With the firm making its biggest outlay in buying new production since 1999.

In a place few observers expected. 

The company is French major Total. And the location is the North Sea. 

Total announced over the weekend that it will acquire the oil and gas unit of Denmark’s A.P. Moller-Maersk — for a total deal value of $7.45 billion, including $4.95 billion in shares and assumption of $2.5 billion in debt. 

That’s the biggest deal Total has made in nearly two decades. And the buy is firmly focused on the North Sea — with 80 percent of the Maersk asset portfolio located in this region. 

That includes 160,000 barrels per day equivalent of production, which Total says it can expand to 200,000 boe/d by 2020. 

The deal is significant for a number of reasons. First because it’s a key signal that oil majors are getting comfortable doing deals again — after a freeze in spending triggered by the oil price crash of 2015. 

In fact, the Total deal is the biggest of the past year. Coming after Exxon Mobil announced spends like a $5.6 billion acquisition in the Permian Basin of Texas, and a $2.5 billion purchase of Papua New Guinea natural gas developer Interoil.  Related: Brazilian Corruption Charges Could Impact Mexico’s Oil Boom

This week’s deal also confirms a trend that’s been in motion for a few years now: a gradual resurgence of the North Sea. With this mature basin quietly attracting a lot of spending from some of the world’s biggest E&Ps.

Despite the big upside of Brazil or East Africa, the North Sea is a place many firms understand — with a proven track record of ease in finding and developing new oil and gas fields. 

That predictability still trumps high-impact geology for many majors. Watch for more deals in this space — and for a continuation of the general upswing in energy M&A currently in motion.

Here’s to known quantities.

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News