Private equity funds' oil and gas asset acquisitions rise

The acquisition of European oil and gas assets by private equity funds has accelerated, new analysis shows.

Legal giant Mayer Brown said there were 16 deals worth £12 billion announced in the last year, set against £2bn in 12 deals the year before.

The firm said there has also been a marked increase in number of mid and downstream deals around the world.

Bob Palmer, partner at Mayer Brown, said that private equity funds are benefitting from oil and gas majors’ commitment to transition away from fossil fuels.

 He said that this has given firms the opportunity to acquire assets at attractive prices as multinationals reshape their portfolios in preparation for net zero.

Partners Group, Inflexion and H2 Equity Partners have all acquired oil and gas or services businesses in the last year.

Bob Palmer, partner at Mayer Brown, said private equity interest is still moving towards low carbon businesses and infrastructure despite the Russian invasion of Ukraine causing crude oil and natural gas prices to rise sharply.

Mr Palmer said that "natural gas and liquefied natural gas will be a vital piece of the energy transition jigsaw".

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