O&G consolidation should be in the works


Is this part of CORAL 2.0.1? And, no, this company hijacked the name, pretty much like that dark horse IGL.

Dateline 2015-02-21, The Star:

JUST over six months since the oil price collapse, the industry should be entering its consolidation phase.

For those still believing that the oil price collapse is not having any major changes to the industry, consider the following: speculation is rife that oil giant BP could be a takeover target for ExxonMobil, something that would have been unlikely just a while ago. And in China, officials are hatching a plan to form mega-mergers among the big state oil companies there, partly to produce greater efficiencies at a time of low oil prices.

In Malaysia, the many oil and gas (O&G) service providers that have mushroomed over the years were built on assumptions of a much higher oil price.

In other words, their cost structure does not suit the current environment.

Ideally, they should be restructuring themselves by drastically reducing their cost structure. But business owners will tell you that this is far from an easy endeavour.

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