If there was one thing guaranteed to follow low oil prices (other than the loss of thousands of jobs) it was mergers and acquisitions. This has certainly rung true as companies consolidate their portfolios or use their war chests to snap up competitors while prices are down. The recent deal between Royal Dutch Shell and BG Group has many expecting a renewed wave of major business decisions. The buzz has fueled rumors that BP Plc will be susceptible to a takeover by fellow oil giant Exxon Mobil Corp.
Now even BP is worried that it may be next in line on the merger marketplace, according to Bloomberg. Sources revealed to Bloomberg that "BP executives are concerned the company is vulnerable to an opportunistic bid." Executives have recognized ExxonMobil, of course, but also Chevron Corp. as potential buyers.
The one thing that is crippling BP's market fortitude, however, is also making it an uneasy target. U.S. District Judge Carl Barbier has yet to rule just how much the British oil company will pay in fines under the Clean Water Act for the Deepwater Horizon oil spill, which began five years ago as of Monday. Although BP has shelled out billions for recovery and settlements already, it could be hit with as much as $13 billion in fines for the millions of gallons of crude oil that gushed from its Macondo well.
Despite recent challenges for BP, though, the company is still worth roughly $131 billion. On the other hand, ExxonMobil, which is the most valuable oil company on the globe, has a value of $368 billion, and according to Bloomberg, it has more than enough capital to spend to scoop up BP.
However, BP's chief executive officer, Bob Dudley, doesn't think there will be a major wave of mergers and acquisitions just yet. "I don't actually see the forces at work for lots of consolidation unless the oil price stays down for quite some time," he said Tuesday at the 2015 IHS CERAWeek Conference in Houston. According to Fuelfix, Dudley thinks it may take much longer to work through present surpluses, putting off oil's recovery. So the question remains: Just how long can BP withstand low commodity prices before it sees a takeover bid?
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LUKOIL - The plan is based on the conservative $50 per barrel oil price scenario. Sustainable hydrocarbon production growth is planned in the Upstream business segment along with the growth in the share of high-margin projects in the overall production. In the Downstream business segment, the focus is on the improvement of operating efficiency and selective investment projects targeted at the enhancement of product slate.
BP - BP will acquire on completion a 43% equity share in Lightsource for a total consideration of $200 million, paid over three years. The great majority of this investment will fund Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP and BP will have two seats on the board of directors.
REUTERS - Brent crude was up 69 cents, or 1.1 percent, at $64.03 a barrel by 0743 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015. U.S. West Texas Intermediate crude was up 45 cents, or 0.8 percent, at $57.59 a barrel.
ROSATOM - On December 10, 2017, the construction start ceremony took place at the Akkuyu NPP site under a limited construction licence issued by the Turkish Atomic Energy Agency (TAEK). Director General of the ROSATOM Alexey Likhachev, and First Deputy Minister of Energy and Mineral Resources of the Turkish Republic, Fatih Donmez, took part in the ceremony.