Juan Carlos Beltran’s Post

This article highlights ADNOC's consideration of buying a majority share of BP. I honestly think that it's preposterous for ADNOC to even consider doing so because of the fact that BP is about ten times the value of ADNOC. Although ADNOC passed over BP, it's interesting to see how BP is doing compared to other oil companies. BP stock has been declining compared to oil companies, and there is a general trend of American companies growing more than European ones. It's also a general problem in the UK itsself, with many British firms in other industries being bought out by foreign capital. It's interesting to see if BP will move towards a merger with another supermajor, such as Equinor or Total. According to some analysts, it's only a matter of time before BP gets snatched up. #pge301 https://lnkd.in/gjxbnKRU

ADNOC, which stands for Abu Dhabi National Oil Company, is a state-owned oil and gas company based in Abu Dhabi, United Arab Emirates. It is one of the world's largest oil companies and operates across the entire oil and gas value chain, including exploration, production, refining, and distribution. bp, formerly known as British Petroleum, is a multinational oil and gas company headquartered in London, United Kingdom. It is one of the "supermajor" oil companies and operates in all areas of the oil and gas industry, including exploration, production, refining, and marketing. The discussions between ADNOC and bp were reportedly driven by ADNOC's interest in expanding its global presence and potentially acquiring a stake in bp. However, ADNOC ultimately decided that bp did not align well with its strategic plans. In recent years, there has been a trend of consolidation in the U.S. oil and gas industry, with companies like ExxonMobil and Chevron making significant acquisitions. This consolidation has been driven by factors such as cost synergies, increased efficiency, and strengthening market position. On the other hand, European oil companies, including bp, have seen relatively less M&A activity. However, analysts have been speculating that bp could become a takeover target, as investors have been pushing for a renewed focus on oil and gas assets. In contrast to bp's potential shift towards a more diversified energy portfolio, ADNOC has recently announced plans to increase its oil and gas production. This strategic focus on expanding production capacity positions ADNOC to potentially acquire a smaller global energy company like bp, which could complement its growth plans. It's important to note that all the information provided is based on sources and reports, and the actual outcome of any potential acquisition or consolidation remains uncertain.

Exclusive: UAE's ADNOC recently eyed BP as takeover target, sources say By Sarah Mcfarlane, Anousha Sakoui and Ron Bousso April 11, 2024 The United Arab Emirates' state-owned oil company recently considered buying Britain's BP (BP.L) but the deliberations did not progress beyond preliminary discussions, people familiar with the matter told Reuters. Abu Dhabi National Oil Company (ADNOC) ultimately decided BP would not be the right fit for its strategy, three people said. Political considerations also weighed on the potential move, one of the people said. The 88 billion-pound ($110.3 billion) company has underperformed its competitors for years, which investors and analysts say has made the British firm a potential takeover target. U.S. oil giants are in the midst of the industry's biggest consolidation for decades, but European oil majors have to date not been involved. Investors have penalized BP's plan to reduce fossil fuel production and its faster shift toward renewables than rivals such as Shell, Exxon and Chevron. In February 2023, BP rowed back on its more aggressive energy transition plans. ADNOC, in contrast, has increased oil and gas production capacity and CEO Sultan al-Jaber is seeking to reshape the state giant in the image of a global oil major. The company, which is not publicly traded, is big enough to consider acquiring the smaller of the oil majors, BP. ADNOC and BP spoke directly in recent months and ADNOC also sought advice from investment banks on a potential deal, two of the people said. The Emirati giant considered all options when looking at BP, including buying a big stake, a fourth person said. Large companies typically evaluate the market value and strategic worth of rivals for potential acquisitions. BP was one of many companies ADNOC has looked at, the person added. "It didn't go far," the person said of the considerations over buying BP. ADNOC has also looked at other international companies to give it access to a bigger gas and liquefied natural gas (LNG) portfolio, the person added. ADNOC declined to comment for this story. A BP spokesman and a spokesman for Britain's business ministry also declined to comment. BP's U.S. shares rose 0.2% in afternoon trading, hitting a six-month high of $40 and erasing earlier losses.

🇦🇪 🇬🇧 🚨 Exclusive: ADNOC recently eyed BP as takeover target The United Arab Emirates' state-owned oil company recently considered buying Britain's BP, but the deliberations did not progress beyond preliminary discussions, people familiar with the matter told Reuters. Abu Dhabi National Oil Company (ADNOC) ultimately decided BP would not be the right fit for its strategy, three people said. Political considerations also weighed on the potential move, one of the people said. The 88 billion-pound ($110.3 billion) company has underperformed its competitors for years, which investors and analysts say has made the British firm a potential takeover target. U.S. oil giants are in the midst of the industry's biggest consolidation for decades, but European oil majors have to date not been involved. #LNG #BP #ADNOC

𝘾𝙝𝙚𝙫𝙧𝙤𝙣 𝙖𝙣𝙙 𝙀𝙭𝙭𝙤𝙣'𝙨 𝘿𝙞𝙨𝙥𝙪𝙩𝙚 𝙊𝙫𝙚𝙧 𝙃𝙚𝙨𝙨 𝙎𝙩𝙖𝙠𝙚 𝙞𝙣 𝙂𝙪𝙮𝙖𝙣𝙖 𝙊𝙞𝙡 𝘽𝙡𝙤𝙘𝙠 In a recent development reported by Sabrina Valle for Reuters, Chevron Corp is engaged in discussions with ExxonMobil and China's CNOOC regarding the potential acquisition of Hess Corp.'s stake in the Stabroek oil block in Guyana. This dialogue stems from Chevron's announcement last October of its intent to purchase Hess for $53 billion, primarily to secure Hess's 30% share in the Stabroek block, known for its vast oil reserves estimated at 11 billion barrels. The crux of the matter lies in whether Exxon and CNOOC hold a right of first refusal to buy Hess Corporation's operations in Guyana. A failure to reach a consensus could jeopardize Chevron's acquisition of Hess, as detailed in a securities filing by Chevron. Both Chevron and Hess remain optimistic that the ongoing discussions will lead to a favorable outcome that won't hinder the merger. Nonetheless, there's a possibility of arbitration if a settlement is not achieved, adding a layer of uncertainty to the transaction. This dispute has had immediate financial repercussions, with Hess's shares dropping nearly 3% in late trading. Exxon, on its part, has confirmed its participation in the talks, emphasizing its commitment to safeguarding the value it has generated in the Guyana asset and working in tandem with the Guyanese government. The acquisition is significant for Chevron, as it would bolster its stake in the lucrative Stabroek offshore oil block. However, the Federal Trade Commission's request for additional information has delayed the merger's completion, now expected no earlier than mid-year. The Exxon-led consortium has ambitious plans for Guyana, aiming to triple the country's oil output to over 1.2 million barrels per day by 2027, highlighting the strategic importance of the Stabroek block in the global energy landscape. https://lnkd.in/gFFvbURD

Abu Dhabi’s state-owned oil company reportedly recently explored a multibillion-pound bid for BP, in a sign that depressed share values in London are making even the biggest British businesses takeover targets. Abu Dhabi National Oil Company (Adnoc) considered options including buying BP or acquiring a large stake before deciding it was not the right fit and abandoning preliminary discussions, according to Reuters. Adnoc and BP spoke directly in recent months and the United Arab Emirates firm also sought advice from investment banks on a potential deal, although discussions did not progress far, the report added. Shares in BP rose by more than 2% in early trading to 530.5p, valuing the company at £89.4bn. The reported takeover talks have come to light just months after BP’s chief executive, Murray Auchincloss, was forced to downplay speculation that the oil company could become a target after reporting weaker than expected quarterly profits last October. At the time Auchincloss said he was not concerned about the takeover speculation because BP was trading at multiples to earnings that were similar to the European oil companies Shell and Total. He said BP had also started to close the valuation gap between the company and its US competitors. BP has underperformed against its competitors in recent years, which investors and analysts have blamed on the company’s high-profile green pledges including a commitment to produce 40% less oil and gas by the end of the decade. The company watered down the target last year to a 25% reduction after revealing bumper oil and gas profits following the war in Ukraine. BP and Adnoc already have a number of joint ventures, including a link-up to develop gas assets in Egypt announced in February and a separate partnership last year to acquire a 50% stake in the Israeli natural gas group NewMed, although this investment is on hold. BP’s ties to the UAE predate the founding of Adnoc more than 50 years ago. The company was part of a consortium of western oil majors that spearheaded the exploration of oil and gas across the Middle East and helped to discover oil in the emirate in 1958. In recent years BP has acquired shareholdings of 10% in Adnoc’s onshore, liquified natural gas and gas shipping subsidiaries. Adnoc and BP declined to comment. UK companies have recently attracted takeover interest because of relatively lower share values in London’s stock market, which have prompted companies including CRH and Flutter to move their listings to New York. BP confirmed Auchincloss as chief executive earlier this year, succeeding Looney, who resigned last year for failing to disclose past relationships with colleagues. The company has committed to a huge share buyback programme and has said it wants to purchase $3.5bn (£2.8bn) of its shares in the first half of 2024 and at least $14bn in stock in 2024 and 2025. #bp #adnoc #abudhabhi #uae #oil #crudeoil #petrochem #lubricants #lubricantsoil

In a dynamic twist in the energy sector, Chevron's ambitious plan to acquire Hess Corporation for $53 billion in stock, as announced last October, faces a potential delay due to ExxonMobil's recent strategic maneuvers. Exxon, stepping into the scene with its acquisition of Pioneer Natural Resources for $60 billion, has heightened the competitive landscape, reminiscent of Chevron's experience with Anadarko being acquired by Occidental. This unfolding scenario underscores the intense rivalry and strategic plays within the oil and gas industry, highlighting the significant implications for market dynamics, shareholder value, and future consolidation efforts. The situation represents a crucial moment for Chevron as it navigates this challenge, reflecting broader industry trends of major players seeking to strengthen their positions through strategic acquisitions. The outcome of this rivalry will not only affect the companies involved but could also set a precedent for future deals in the sector, emphasizing the importance of strategic foresight and agility in today’s fast-paced market environment. https://lnkd.in/gEQtqqUE

Excerpts: The #Chevron - #Hess deal comes less than two weeks after #ExxonMobil said that it would #acquire #PioneerNaturalResources for about $60 billion. - Chevron is buying Hess Corp. for $53 billion. - Chevron said Monday that the #acquisition of Hess adds a major #oilfield in #Guyana 🇬🇾 as well as #shale properties in the Bakken Formation in #NorthDakota. Guyana is a South American country of 791,000 people that is poised to become the world’s fourth-largest #offshore #oilproducer, placing it ahead of Qatar, the United States, Mexico and Norway. It has become a major producer in recent years with oil giants, including Exxon Mobil, China’s CNOOC, and also Hess, squared off in a heated competition for highly lucrative oil fields in northern South America. #APNews #oilandgas #mergerandacquisitions #mergers #acquisitions

💼 The US oil industry is heating up with another mega-merger! Discover the details of the latest $17bn deal and its impact on the market. 🌍 #OilIndustry

💼 The US oil industry is heating up with another mega-merger! Discover the details of the latest $17bn deal and its impact on the market. 🌍 #OilIndustry