Mergers and acquisitions (M&A) deals in the oil and gas (O&G) industry were edging up slightly throughout 2007 despite the impact of the credit crunch, PricewaterhouseCooper (PwC)’s latest annual analysis of M&A activity in the sector, O&G Deals, reveals.

The report shows deal totals rose from $US291.1bn (₤147.7bn) to $US292.2bn year on year. There was no clear evidence of a decline in O&G deal activity in the second half of the year as the credit crunch broke, reflected in the number of 2007 final quarter deals – up 7% on the final quarter of 2006.

The total value of deals in the oil field services sector jumped 165%, to US$67.3bn in 2007. The oil services sector is now a key driver of M&A activity in the wider O&G industry, accounting for almost a quarter (23%) of the value of all deals compared with just 4% in 2005.

Discounting the massive StatoilHydro $32.2bn upstream merger in 2006, remaining upstream European deal value was slightly up in 2007 and the value of downstream deals more than doubled, to $US8.4bn, accounting for the biggest share of total European O&G deal value.

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