Table 2 Global Oil and Gas M&A Deals -- Q1 and Q2 2013 Q1 2013 Q1 2013 Q2 2013 Q2 2013Continent Deal Value # of Deals Deal Value # of Deals (US$MM) (US$MM)Africa $4,247 2 $5,794 8Asia $60 2 $349 3Australia $208 2 $146 6Europe $626 4 $177 6Former Soviet Union $1,389 5 $6,259 9Middle East $62 1 $0 0North America $13,821 96 $9,964 99South America $458 5 $2,222 10TOTAL $20,871 117 $24,911 141
Source: PLS Derrick M&A Database. Number of deals above is for deals with price disclosure. Deal count totals including those without price disclosure are 192 in Q1 and 214 in Q2.
According to Mangesh Hirve, Director, Derrick Petroleum Services, "Africa continues to be very active for deal activity particularly for international companies. For example, in Mozambique, beginning with the battle between Shell and Thailand's PTTEP last year for Cove Energy (whose primary asset is offshore Area 1) which PTTEP won for $1.7 billion, there have been two additional large acquisitions. In March, China's CNPC paid ENI $4.2 billion for a 20% interest in Area 4 and in June, India's ONGC and Oil India joined to pay $2.5 billion for Videocon's 10% interest in Area 1. In Area 1, first LNG exports are expected in 2018. Notably, Standard Chartered acted as financial advisors for the sellers on both large Area 1 deals. Elsewhere in Africa, Nigeria has been quite active in the last year with 8 deals totaling nearly $7 billion."
Six deals topped $1 billion globally during the quarter -- three in Africa, two in Russia and one in Canada. This compares to a record 22 deals of $1 billion or greater in Q4 2012 and five in Q1 2013. For perspective, the average pace of deals greater than $1 billion since 2007 is 8.75 per quarter.
Table 3 Q2 2013 Global Deals > $1 BillionDate Buyers Sellers Deal Value Country (US$MM)06/21/2013 Bradinor,Cromeld Sistema $3,665 Russia06/25/2013 ONGC (India),Oil India Videocon $2,475 Mozambique04/01/2013 Lukoil Hess,Simon Kukes $2,050 Russia06/14/2013 Banco PTG Pactual Petrobras $1,525 Nigeria06/18/2013 Sinopec Marathon $1,520 Angola04/15/2013 Centrica,Qatar Pet. Suncor $1,000 Canada
Source: PLS Derrick M&A Database
United States -- Q2 2013
In the United States, deal activity in Q2 2013 rose 18% to 71 transactions compared to 60 in Q1 2013. Deal value dropped 40% to $7.9 billion compared to Q1 2013 and the United States global share dropped 50% to 32% in Q2. Since 2007, the quarterly average deal count has been 70 deals while the quarterly average deal value has been $16.4 billion. The Q2 deal value is the lowest quarterly total since Q3 2009's $4.1 billion.