More consolidation seen in O&G industry


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Dateline 2015-06-13, The Star:

It will be driven by current weak oil price, as companies need to grow in terms of size and capability to stay competitive

IT is hard to predict when oil prices will rise to more profitable levels again.

But with the economic reasons behind the collapse of global crude oil prices unlikely to go away anytime soon, industry players will just have to brace for a prolonged period of tough business environment.

To remain in the game, many will likely seek consolidation or other merger and acquisition (M&A) exercises.

In Malaysia, such trend is already emerging, with industry observers regarding Dayang Enterprise Holdings Bhd’s buyout offer for Perdana Petroleum Bhd last month as the start of a consolidation phase for the local oil and gas (O&G) sector.

 

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