Oil & gas: All quiet on the consolidation front


Does no one want to buy me out? And DESB owns Perdana?

Dateline 2016-05-06, The Sun:

While talk of consolidation in the oil and gas (O&G) industry has been around since the plunge in global oil prices last year, analysts opine that the process, if it indeed happens, will be on a small scale, as its positive effect is limited.

An analyst who declined to be named said consolidation won’t change the cost structure for O&G firms, thus it is not expected to happen “in a big way”.

“If you consolidate all the assets, it won’t change your cost structure much. So the synergy of doing consolidation is not much. They don’t have incentives to go into M&As (mergers and acquisitions). Maybe one or two acquisitions will happen, but they won’t be big and change the industry,” he said.

“So far, we’ve seen only one consolidation, the takeover of Perdana Petroleum Bhd by Dayang Enterprise Holdings Bhd last year,” he added.

,,,

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: