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Europe’s oil & gas industry saw a rise of 23.73% in cross border deal activity in Q4 2020

Led by PPG Industries’ $1.52bn acquisition of Tikkurila, Europe’s oil & gas industry saw a rise of 23.73% in cross border deal activity during Q4 2020, when compared to the last four-quarter average, according to GlobalData’s deals database.

A total of 73 cross border deals worth $7.58bn were announced for the region during Q4 2020, against the last four-quarter average of 59 deals.

2015 12 14 084154Of all the deal types, M&A saw most activity in Q4 2020 with 69, representing an 94.5% share for the region.

In second place was private equity with four deals capturing a 5.5% share of the overall cross border deal activity for the quarter.

In terms of value of cross border deals, M&A was the leading category in Denmark’s oil & gas industry with $5.95bn, followed by private equity deals totalled $1.42bn.

Europe oil & gas industry cross border deals in Q4 2020: Top deals

The top five oil & gas cross border deals accounted for a 73.8% share of the overall value during Q4 2020.

The combined value of the top five cross border deals stood at $5.6bn, against the overall value of $7.58bn recorded for the quarter.

The top five oil & gas industry cross border deals of Q4 2020 tracked by GlobalData were:

  • PPG Industries’ $1.52bn acquisition of Tikkurila
  • The $1.42bn private equity deal with Galp Gas Natural Distribuicao by Allianz Capital Partners
  • Trinseo’s $1.36bn asset transaction with Arkema
  • The $745.66m asset transaction deal with OMV by EG Group
  • Equinor’s acquisition of KrasGeoNac for $550m.

This analysis considers only announced and completed deals from the GlobalData financial deals database and exclude all terminated and rumored deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage. 

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources. 

About GlobalData 

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.

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Chevron Invests in Geothermal Development Company

Chevron Corporation (NYSE: CVX) has just announced an investment in Baseload Capital AB, a Sweden-based private investment company focused on development and operation of low-temperature geothermal and heat power assets.

Heat power is an affordable form of renewable energy that can be harnessed from either geothermal resources or waste heat. This investment round includes existing Baseload Capital investors Breakthrough Energy Ventures and Sweden-based investment group Gullspang Invest AB.

Chevron LogoThe Baseload investment follows last month’s announcement of funding for Eavor and expands Chevron’s capacity to gain insight into geothermal innovations such as low-temperature power generation and closed-loop geothermal technologies.

Chevron Technology Ventures (CTV) identifies externally developed technology with the potential to enhance the way Chevron produces and delivers affordable, reliable and ever-cleaner energy now and into the future. The investments in Baseload and Eavor are financed by CTV’s Core Venture fund which identifies companies with technology that can add efficiencies to Chevron’s core business in operational enhancement, digitalization, and lower-carbon operations.

“Chevron’s investments in geothermal power reflect our ongoing focus on helping to advance the world’s transition to a lower-carbon future,” said Chevron’s Vice President, Innovation and President of Technology Ventures, Barbara Burger. “We look forward to working with Baseload Capital and Eavor to expand geothermal resources in the U.S. and internationally.”

Chevron and Baseload are planning potential pilot projects to test new technology. Baseload Capital currently operates in Japan, Taiwan, Iceland, and the United States. As Baseload develops in these regions and expands to new markets, Chevron and Baseload will look for commercial geothermal and heat power opportunities in additional Chevron operations.

“In August, we announced that we were looking for a new strategic investor to help us accelerate deployment in our key markets,” said Baseload’s Chief Executive Officer Alexander Helling. “We couldn’t have asked for a better one. Chevron complements our group of owners and adds expertise in drilling, engineering, exploration and more. These assets are expected to accelerate our ability to deploy heat power and strengthen our way of working.”

About Baseload Capital

Baseload Capital is a specialized investment entity that funds the deployment of heat power worldwide. The company currently has subsidiaries in Iceland, Japan, Taiwan, and the U.S., which work with local communities and power companies to permit, build and commission heat power plants. By applying innovative financing structures and using subsidiaries to roll out local implementation, Baseload Capital can help nations quickly transition away from fossil fuels and toward energy independence. The result will lead to more resilient societies and a planet in balance. For more information, visit: baseloadcap.com.

About Chevron Technology Ventures

Chevron Technology Ventures (CTV) pursues and invests in externally developed technologies and new business solutions that have the potential to enhance the way Chevron produces and delivers affordable, reliable, and ever-cleaner energy. CTV leverages innovative companies and technologies to strengthen Chevron’s core operations and identifies new opportunities to shape the future of energy. For more information, visit www.chevron.com/technology/technology-ventures.

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Norway’s authority on petroleum safety awards contract to Vysus Group for risk consulting services

Vysus Group (formerly LR Energy), the global engineering and technology company, has secured a framework agreement with the Petroleum Safety Authority Norway (PSA), the government agency with regulatory responsibility for safety in the petroleum sector across the Norwegian continental shelf.

The agreement, which was awarded at the end of 2020, will see Vysus Group support continuous improvement related to safety and provide advice in risk analysis and emergency preparedness, helping the PSA investigate accidents and incidents over a two-year period, with the option to extend the agreement for an additional two years into 2024.

Robert Nyiredy, VP Risk Management ConsultingRobert Nyiredy, VP Risk Management ConsultingThe scope of work will include assessments to determine risk that may cause damage to offshore personnel or the environment, the evaluation of emergency preparedness conditions to limit the impact of an incident, and various studies which may include the assessment of new technologies, fire and explosion calculations, security systems or process solutions.

Leveraging decades of experience working in the Norwegian offshore industry, Vysus Group’s team of experts will also support the PSA on projects to highlight the level of risk within the petroleum activities.

A recent survey[1] by the Norwegian Statistics Bureau (SSB) has found that investments in oil and gas activity in 2021 are accelerating, with an estimated 166.3 billion NOK ($18.4 billion) boost to the petroleum industry, up from the 148.6 billion NOK forecast in August 2020.

Robert Nyiredy, VP Risk Management Consulting, Vysus Group said: “By proactively identifying risk, and arming asset operators with key data and insights, the PSA is helping to prevent serious health and safety issues and catastrophic environmental disasters before they arise, thus protecting the environment and the hundreds of thousands of personnel working in Norway’s oil and gas sector each year. This has never been more important than it is today, as operators face the challenges associated with reduced manpower and Covid-19 restrictions.”

Mr Nyiredy continued: “We are proud to continue our relationship with the PSA, and to have the opportunity to support its sharp focus on safety through this latest agreement. The appointment is testament to the trust and confidence that Vysus Group has built with the government authority, and our commitment to making global oil and gas operations as efficient and safe as possible through our specialist risk management services.”

[1] https://www.ssb.no/en/energi-og-industri/artikler-og-publikasjoner/upward-adjusted-estimates-for-oil-investments-in-2021

About Vysus Group

Following a strategic-carve out from Lloyd’s Register (LR), LR’s Energy business is now Vysus Group, a standalone engineering and technical consultancy, offering specialist asset performance, risk management and project management expertise across complex industrial assets, energy assets (oil and gas, nuclear, renewables), the energy transition and rail infrastructure.

Vysus Group retains LR Energy’s entire capability and continues to offer its full suite of technical, regulatory and operational expertise globally, with all 650+ of our global experts transitioning. Driven by its purpose to help clients manage risk and maximise performance, blending deep technical knowledge and data-driven insights with hands on expertise.

LR’s Energy business was founded in the 1930s following LR’s diversification from marine assets into the oil and gas industry. LR Energy has subsequently supported the transformation of global energy infrastructure, working on complex and large-scale energy projects around the world, becoming one of the leading engineering consultancy partners of choice. Vysus Group is currently using an interim logo and brand identity whilst we execute a thorough rebrand process. Vysus Group will launch a new logo, brand identity and full website in March 2021.

For more information about Vysus Group, visit: www.vysusgroup.com

About PSA

The Petroleum Safety Authority Norway (PSA) is subordinate to the Ministry of Labor and Social Affairs (ASD) and has government responsibility for safety, emergency preparedness and working environment in the petroleum activities. The PSA shall set premises for and follow up that the players in the petroleum activities maintain a high level of health, environment, safety and emergency preparedness and through this also contribute to creating the greatest possible value for society.

PSA shall conduct information and advisory activities to the players in the petroleum activities, cooperate with other health, environment, safety (HSE) authorities nationally and internationally and contribute to knowledge transfer in the HSE area in society in general.

The PSA shall, through its own supervision, and co-operate with other authorities with independent responsibility in the HSE area, ensure that the supervision of the petroleum activities is conducted in a comprehensive manner. The PSA's area of authority also includes supervision of safety, emergency preparedness and working environment at petroleum facilities on land. The PSA demarcates and carries out targeted supervisory tasks.

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US to drive global crude oil trunk/transmission pipelines growth by 2024, says GlobalData

The US is expected to dominate global crude oil trunk/transmission pipeline growth, accounting for almost one-fourth of the total pipeline length growth by 2024. With expected length additions of 4,900 km from projects that have received approval or are awaiting approval, the US is far ahead of any other country in the world in terms of pipeline growth by 2024, says GlobalData, a leading data, and analytics company.

GlobalData’s report, ‘Global Crude Oil Pipelines Industry Outlook to 2024 - Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Crude Oil Pipelines’, reveals that the total global crude oil pipeline length additions are expected to be more than 17,000 km by 2024. Of the countries studied for pipeline growth, the US is on top with 4,895 km, followed by Russia with 2,040 km and Canada with 1,443 km.

Soorya Tejomoortula, Oil and Gas Analyst at GlobalData, comments: “The COVID-19 pandemic has resulted in project delays and capex cuts in the US crude oil transmission pipelines segment. However, the sector is expected to gradually recover from the pandemic impact if the recovery of crude oil prices continues, and any potential ramp-up of production by the US shale producers in the near future.”

Among the upcoming pipelines in the US, Jupiter is a key announced pipeline with a total length of 1,094 km. With operations expected to start in 2023, Jupiter is being planned to carry crude from the Permian Basin to storage terminals along the Gulf of Mexico.

Capline Reversal is another key pipeline in the country and is expected to start operations in 2021 with a total length of 1,036 km. The pipeline will help to transport crude from the US Midwest to the Gulf of Mexico. Earlier, the pipeline was used to carry crude to the refineries in the Midwest from the Gulf of Mexico, but it is now being reversed due to the shale oil boom in the US.

2021 02 17 104623

GlobalData also notes that Niger has the second longest crude pipeline additions globally, representing 11.8% of the total length additions by 2024. Only two pipelines are expected to start operations in the country by 2024 with Niger–Benin accounting for almost the entire additions with 1,950 km. The pipeline is expected to start operations in 2024 and will transport crude from the Agadem crude oil production field in Niger to the Port Seme terminal in Benin.

After the US and Niger, Uganda occupies third place with an 8.3% share with one pipeline, East African Crude Oil (EACOP), accounting for the entire pipeline additions in the country. EACOP is 1,443 km long and is expected to start operations in 2024. Like Niger–Benin, it is a transnational pipeline carrying crude from Uganda to Tanga port in Tanzania.

  • Comments provided by Soorya Tejomoortula – Oil & Gas Analyst at GlobalData
  • Information based on GlobalData’s report: Global Crude Oil Pipelines Industry Outlook to 2024 - Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Crude Oil Pipelines
  • Announced/Planned: Denotes only new build assets that are in different stages of development and have not started commercial operations
  • Announced: A new build project that has not received relevant/ required approvals to develop/build the project is considered as announced
  • Planned: A new build project that has received relevant/ required approvals from the national government/ energy ministry/ regulatory authority/ local environmental authority/ port authority/local government, etc to develop/build the project is considered as planned
  • This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

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TietoEVRY to sell its Oil & Gas software business

TietoEVRY has reached an agreement with Aucerna, a Quorum Software affiliate, to sell its Oil & Gas software business. This divestment is part of the company’s strategy to seek focus and scale. Through this transaction the Oil & Gas software business will have greater global market reach and growth opportunities.

TietoEVRY’s Oil & Gas software has successfully expanded from its origin as a key supplier to the Norwegian Continental Shelf (NCS). Today this unit has more than 30 years of experience delivering end-to-end hydrocarbon management solutions, personnel and material logistics software and related services with installations in more than 50 countries. Revenue of the businesses to be divested amounts to around EUR 50 million in 2020 and the number of employees is over 400. The business has limited operational dependencies with the rest of TietoEVRY.

2020 06 05 111601Quorum is a leading software provider for digital transformation in energy industry. Upon completing the transaction, the company will become a leading software provider with a broad portfolio of solutions focused entirely on serving energy companies across the globe.

“TietoEVRY’s Oil & Gas software solutions have successfully grown to be a leading software in hydrocarbon management, with global presence. With strong focus and commitment, the new combined company will be able to drive growth and digital transformation in the energy industry worldwide. I truly believe that this combination will open up exciting career opportunities for employees as part of the larger community of the Oil & Gas industry and software experts,” says Kimmo Alkio, the President and CEO of TietoEVRY.

“Quorum and TietoEVRY’s Oil & Gas software business have developed longstanding relationships with our customers and partners over decades serving the energy industry. Bringing together our market-leading software portfolios gives customers access to the industry’s most complete technology ecosystem designed for energy. Our combined talented team makes it possible to accelerate the speed to value we are uniquely capable of delivering to a global customer base. I look forward to welcoming TietoEVRY`s Oil & Gas software business employees to Quorum as we move forward on our mission to connect the people and the data of the modern energy industry,” says Gene Austin, CEO of Quorum Software.

"We are very grateful for being part of TietoEVRY and have had the opportunity to expand our business globally. Now as the Oil & Gas industry is emerging into a new phase, we are looking forward to entering a new chapter of our history. By joining Quorum, we will be well positioned to continue to create high value through digital solutions for our customers, and exciting opportunities for our employees,” says Kaare Lunde, Head of Oil & Gas software business in TietoEVRY.

TietoEVRY anticipates that the transaction, subject to approval by competition authorities, will be concluded before summer 2021. The financial and legal advisors to TietoEVRY in the transaction have been Evercore and Schjødt.

TietoEVRY creates digital advantage for businesses and society. We are a leading digital services and software company with local presence and global capabilities. Our Nordic values and heritage steer our success. Headquartered in Finland, TietoEVRY employs around 24 000 experts globally. The company serves thousands of enterprise and public sector customers in more than 90 countries. TietoEVRY’s annual turnover is approximately EUR 3 billion and its shares are listed on the NASDAQ in Helsinki and Stockholm as well as on the Oslo Børs. www.tietoevry.com

Quorum Software is the world's largest software provider focused solely on business workflows that empower the next evolution of energy. Our industry-leading solutions are transforming energy companies across the entire value chain. From emerging companies to supermajors, throughout every region of the globe, customers rely on Quorum's proven innovation and unmatched global expertise to streamline business operations and make data-driven decisions that optimize profitability and growth. We're helping visionary leaders transform their companies into modern energy companies. Visit quorumsoftware.com.