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

RELEASE DATE
18-Nov-2016
REGION
Asia Pacific
Research Code: P90F-01-00-00-00
SKU: EG01736-AP-MR_19827

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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

Legal Disclaimer

The Frost & Sullivan Story

Value Proposition: Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
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 Buil
More Information
No Index No
Podcast No
Author Vinod Cartic
Industries Energy
WIP Number P90F-01-00-00-00
Is Prebook No