Malaysia Oil and Gas Services Sector Mergers and Acquisitions (M&A) Opportunities, Forecast to 2025
Malaysia Oil and Gas Services Sector Mergers and Acquisitions (M&A) Opportunities, Forecast to 2025
Growth is Likely Through Consolidation and Integration Even as Oil Price Witnesses a Reversal of Fortunes
18-Nov-2016
Asia Pacific
Description
Oil and gas companies, oil and gas service companies, law firms, financial service companies, and government institutions, have all been calling for competitive advantage through mergers and acquisitions (M&A) in Malaysia. In recent times, Malaysian oil and gas service companies have been adversely hit by the low oil price regime. Petronas, the leading national oil company of Malaysia, has cut down significantly on the awarding of new production sharing contracts (PSCs) and risk sharing contracts (RSCs). Apart from investment on brownfield projects, final investment decision (FID) on upstream greenfield projects are likely to be deferred. The Asia-Pacific region’s upstream expenditure in 2016 is expected to decrease by 33% compared to 2015 levels (it declined by 21% compared to 2014 levels).
At the same time, the Asia-Pacific region is a net oil importer, importing around 75% of its oil requirements. This trend is expected to continue.
As a result, service companies have a greater challenge in keeping their revenue streams growing. Consolidation could provide a solution in these tough times and lead to major advantages like economies of scale, geographic diversification, and integration. This study provides an analysis of the expected M&A themes in the oil and gas industry over the course of the next decade and beyond. The Global Energy and Environment Research Team at Frost and Sullivan also picks the top sectors and the top 16 companies in the oil and gas services sector in Malaysia which are ripe for consolidation.
Research Scope:
• O&G - Upstream and downstream
o Material-based industry
o Equipment-based industry (rental, specific equipment provider, etc.)
o Gas utilisation industry
• Supporting services
o Construction service:
• EPC companies (Planning, Implementation & Supervision)
o Non-construction service:
• Seismic Survey and Non Seismic Survey
• Geology and Geophysics
• Drilling and Well Drilling Operations
• Waste Management
Research Approach:
o Building a list of 1000+ companies operating throughout the oil and gas value chain
o 30+ industry sub sectors were identified, based on current market condition and value chain position
o An initial analysis conducted through primary interviews with different industry stakeholder
o Each of these sectors were analyzed in in detail from a risk- opportunity perspective to arrive at the most promising companies per sector
Key Questions that This Study Will Answer:
Who: Who are the most active buyers?
What: What are the hottest sectors for the M&A deals?
Where: Where are the buyers located? Which region is most attracted to the Malaysian O&G sector?
When: An analysis of year-wise transactions
Why: What is the underlying logic behind these M&A deals?
How: How much were the target companies valued at an aggregate level?
Table of Contents
Key Findings
Promising Target Companies
Scope of the Study
Scope of the Study (continued)
Industry Sub-Sectors Selection Methodology
Oil Price Formation Mechanism
Gas Price Formation Mechanism
Analysis of Global Oil and Gas Market
Analysis of the Condition of the World Oil and Gas Market
Key Upstream Trends
Impact of Low Oil Prices on Asia-Pacific Upstream Segment
Key Downstream Trends
Positive Outlook for Asia-Pacific Petroleum Storage Projects
Key Future Trend—Smart Oilfield Services
Implications from an M&A Perspective
Malaysia—Oil Value Chain
Malaysia—Gas Value Chain
Malaysian Oil and Gas Business Activity
Malaysia Oil and Gas Industry—SWOT Analysis
Upstream Segment—Major Player Identification
Upstream Segment—Major Player Identification (continued)
Midstream and Downstream Segment—Major Player Identification
Midstream and Downstream Segment—Major Player Identification (continued)
Understanding the M&A Transactions
Who—Most Active Buyers
Where and When—Geography and Timeline
What and How Much—Sectors of Interest and Valuation
Why—The M&A Themes
Key Risks Across Upstream Stages
Key Risks Across Midstream & Downstream
Cost Structure in the Malaysian Oil & Gas Industry—Upstream Segment
Operating Cost Analysis in the Malaysian Oil and Gas Industry—Upstream
Operating Cost Analysis in the Malaysian Oil and Gas Industry—Downstream
Impact of Projected Crude Oil Price on Financing
Implications and Current Drivers for M&A
Company Selection Methodology—Strategic Approach
Company Selection Methodology—Strategic Approach (continued)
Company Selection Methodology—Strategic Approach (continued)
Risks & Opportunity Across Sub Sectors
M&A Sector Scorecard
Sector-Wise Selection Criteria for Promising Companies
Oil and Gas Fabrication—Sectoral Overview
Oil and Gas Fabrication—Promising Companies
Oil and Gas Upstream Services—Sectoral Overview
Oil and Gas Upstream Services—Promising Companies
Offshore Vessels—Sectoral Overview
Offshore Vessels—Promising Companies
Engineering Services—Sectoral Overview
Engineering Services—Promising Companies
Abbreviations
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No Index | No |
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Podcast | No |
Author | Vinod Cartic |
Industries | Energy |
WIP Number | P90F-01-00-00-00 |
Is Prebook | No |