Big oil and gas players may continue asset buys this year: Hibiscus


Dateline 2018-03-01, NST:

Asset acquisitions in the oil and gas industry may continue this year as big players seek to increase their capital expenditure while oil prices are rebounding.

This will also benefit smaller players like Hibiscus Petroleum Bhd in the hunt for potential new brownfield assets as rationalisation by the big players continue.

Since oil price plummeted in 2014, the global oil and gas industry saw high number of mergers and acquisition (M&As) deals where big players carried out their rationalisation plans, cut down costs and capital deployment, as well as sold assets to smaller players.

Bloomberg data showed M&As in the industry picked up since 2013 to reach its highest volume level of 428.2 billion in 2017.

According to Financial Times, quoting Mergermarket, M&As had risen by 40 per cent to US$270 billion in the first nine months of last year, compared with US$192 billion in the same period in 2016.

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