In big oil mergers, spreadsheets prove mightier than rigs
Article Abstract:
Oil industry mergers like that of British Petroleum PLC with Amoco Corp may be motivated more by the desire for efficiency than by weak demand for oil. BP began seeking a merger partner in Sep 1996, when prices were still at about $21/barrel, and such consolidations are likely to continue long after the demand for oil rebounds. Such new technologies as 3-D imaging and horizontal drilling are saving billions in production costs and bringing new fields into production, bringing more oil on the market and cutting into prices and margins. For instance, Norsk Hydro A/S and Statoil were able to use horizontal drilling to develop a huge field that could have been considered commercially insignificant in the late 1980s.
Comment:
Oil industry mergers like that of British Petroleum PLC with Amoco Corp may be motivated more by the desire for efficiency than by weak demand for oil.
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
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Oil firms MOL and INA are considering a merger
Article Abstract:
MOL Hungarian Oil & Gas Co. and INA-Industrija Nafte dd of Croatia announced that they are studying the possibility of a merger. Both also said that they were planning to begin exclusive merger negotiations. Talks are currently in a preliminary stage. MOL is the national oil champion of Hungary, while INA is the oil champion of Croatia.
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1999
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