Specialist
Manager at Canadian Rockies International Energy Co Ltd
Agenda
- 2019-20 oilfield M&A trends of China’s oil and gas companies, plus trends for the next three years
- Selection criteria for M&A targets and policy barriers for M&A
- Valuation logic in oilfield M&A
- Major considerations in due diligence, including reserves and potential operating difficulties
- Overseas oilfield operations, including ground and underground engineering, safety measures and equipment and personnel CAPEX trends
Questions
1.
In recent years, many Chinese oil and gas companies have engaged in the M&A of overseas oilfields, gas fields and related assets. What do they expect to get from such operations? Have there been any noteworthy changes in the incentives for them to do so?
2.
What do you think of the recent slump in oil prices? How will this affect Chinese oil and gas companies’ overseas M&A plans?
3.
You mentioned earlier that Chinese companies engage in overseas oil and gas asset M&A projects mainly to make profits or transfer their own assets. What are the considerations for Chinese oil and gas companies when then choose overseas M&A targets? How do they determine whether there is synergy between M&A targets and their current business? How do they evaluate the quality of M&A targets?
4.
Do you think there will be any new changes in the way Chinese companies carry out overseas oil and gas asset M&A projects, especially on the capital front? Will there be any innovations?
5.
How do Chinese companies evaluate the quality of M&A targets they have found?
6.
Normally how do Chinese companies evaluate the operational capacity of overseas oilfields, especially their safety and equipment and personnel quality? Are the standards used to evaluate the quality of oil assets the same as those used to evaluate the quality of other types of assets?
7.
According to your experience, what do you see as the biggest difficulties or barriers in preliminary valuation? Is there anything that may be overlooked easily?
8.
What are the commonly used models for oil asset valuation? How can Chinese companies set the most reasonable valuation on overseas oil assets based on economics, operational capacity, safety, reserves and output?
9.
Do you think overseas oil assets are overvalued or undervalued at present? How do you expect the transaction prices of overseas oil assets to change in the future?
10.
What is your prediction about the price trends in overseas oil assets? Can you give us a rough idea of the transaction prices of different types of oil assets?
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