Oil & Gas

At Global PMI Partners we work with clients across many industry sectors. Our approach to consulting necessarily requires teamwork and collaboration with you because we believe that no one external knows your industry or your business like you do. However, oil and gas trends and specifics do impact M&A strategy and execution which vary from other industries. We understand these and bring lessons, customized solutions and proven experience from other oil and gas M&A deals.

Industry trends

  • Volatility in oil and gas prices, sharp falls since 2014 putting strain on business models which had got used to $100 per barrel oil
  • Parts of the industry in survival mindset, capex deferred, search for lower risk shorter term projects
  • Cost pressures expected to remain in place for some time
  • A number of exploration and production companies and oil service providers in difficult financial situation
  • A sense of the worst being over as OPEC cuts seem to have stabilized prices at between $50 and $60 per barrel

M&A trends

  • Pricing consensus on upstream assets returning
  • A number of companies undergoing bankruptcy proceedings could become attractive targets
  • Risk sharing around decommissioning liabilities
  • Private equity interest in oil and gas assets

PMI challenges specific to this sector

  • Finding and sustaining the right degree of integration (synergies, cost savings)
  • M&A and PMI capability
  • Industry regulation, safety and environmental issues
  • Competition concerns
  • Cultural differences – traditional versus niche players, cross-border deals

How we can help

  • Integration support from DD to implementation
  • Cultural Due Diligence, IT Integration
  • Carve out services (TSAs)
  • Integration skills and playbook to support serial acquisition strategies
  • Cross-border support

Global PMI Partners specific value prop

  • Expertise in across the oil industry- capacity to bridge cultures and understand strategic challenges
  • Presence in very active markets (US, UK, Europe, Canada, Asia)
  • Expertise in the oil & gas sector
  • Specialist functional expertise

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