Global oil & gas transactions rose 53 percent to $43 billion in the third quarter of 2011, compared with $29 billion in the second quarter of the year.
International database and services provider PLS, Inc. and Derrick Petroleum Services report 166 transactions with deal values disclosed, with $90 billion of deals currently in play.
"The trend of larger companies buying first movers in unconventional plays continues with BHP stepping up last quarter with the $15 billion purchase of Petrohawk,” said Reid Strand, M&A analyst with Houston-based PLS, Inc. “Also significantly, the Utica Shale in Ohio hit the front burner with Hess striking a $593 million JV with Consol Energy."
BHP's acquisition of Petrohawk scores as the third largest global transaction recorded since 2007, trailing ExxonMobil's $41 billion buyout of XTO Energy and the $18 billion merger of Suncor and Petro-Canada.
In Q3 2011, transaction value in the US increased by 72 percent to $24.5 billion from $14.3 billion in the previous quarter. In Canada, transaction value for the quarter held steady at $3.9 billion, nearly identical to Q2 2011.
Overseas activity recovered slightly to $15.7 billion and is up 48 percent from the first quarter. Transaction value in the North Sea/Europe nearly doubled to $7.6 billion from $3.8 billion in the previous quarter. The balance of international activity was scattered largely across Central-South America ($2.9 billion), the Middle East ($2.9 billion) and Australia ($1.7 billion).
The hydrocarbon mix was heavily gas-weighted, with 62 percent of value being gas transactions, 21 percent oil, and the remaining 17 percent a mix of oil and gas. Of the 166 transactions, 42 were more than $100 million and 15 were more than $500 million.
Canadian deal making continues to lag well behind 2010 levels. Activity levels have held fairly steady, with 38 transactions totaling $3.9 billion in the quarter, but large deals make up much less of the mix in 2011.
Overseas deal making rebounded slightly from Q2 but still trails 2010 levels. Similar to Canada, activity levels have increased but large deals have been few and far between. There were only six deals greater than $500 million during the quarter, with only the United Kingdom having more than one. Also, only six countries saw more than $500 million in total value, including Argentina, Australia, Brazil, Iraq, Norway and United Kingdom.
