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Oil, gas M&A show signs of recovery with $14b fresh deals

By Kingsley Jeremiah, Abuja
29 March 2023   |   4:53 am
About three years after the outbreak of Covid-19 pandemic, there are indications that the oil and gas sector may see the return of fresh deals. Recently, Brookfield Renewable Partners announced the acquisition of Australia’s Origin Energy utility..

About three years after the outbreak of Covid-19 pandemic, there are indications that the oil and gas sector may see the return of fresh deals.
Recently, Brookfield Renewable Partners announced the acquisition of Australia’s Origin Energy utility for over $12.4 billion, while the Permian basin has scored another victory with a $1.45-billion asset sale.

After lagging behind as COVID-19 pandemic disrupts the sector, recovery witnessed in oil prices and other aspects of energy appeared to be gaining traction.

In Nigeria, a few acquisitions have taken place after the pandemic with the acquisition of the downstream segment of Oando by Nigerian National Petroleum Company Limited as the latest.

The acquisition of ExxonMobil’s shallow water upstream asset, which would have followed that of Oando, has been left in limbo after a loggerhead between Seplat and some interested parties kept the plan on stand still.

In February last year, Seplat Energy had announced a deal to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from Exxon Mobil Corporation, Delaware (ExxonMobil) worth about $1.3 billion.

While ExxonMobil had recently expressed concerns to conclude the acquisition, the asset set has not made progress since it was approved by President Muhammadu Buhari, but rejected almost immediately by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Oil price reported that the prevailing deal made Origin Australia’s biggest energy retailer and integrated power provider, noting that one of the consortium partners, MidOcean Energy, will own Origin’s gas segment, which includes upstream interests and a hefty stake in Australia Pacific LNG.

There are indications that Origin is eyeing a minimum of $20 billion in new investment over the next 10 years for the construction of up to 14 GW of renewable power generation and storage facilities in Australia.

Energy Transfer Lp is expected to acquire Lotus Midstream pipeline operator in a $1.45-billion deal. Energy Transfer will pay $900 million in cash and remainder in shares.

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