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John Wang
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May 21 20:35

Oil companies renegotiate deals to save budgets

The sector is trying to balance out the losses.
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As the energy sector is still impacted by the pandemic and problematic OPEC+ negotiations, oil companies are adapting to the situation. A number of major enterprises are renegotiating the conditions of earlier deals. 
The Chief Executive Officer of Premier Oil revealed, that he decided to seek for a cheaper price for the North Sea assets. The company agreed to acquire them from BP for US$625 million. Energean is following the same pattern in its US$700 million deal with Edison.
Earlier this month Total made a decision to cancel its acquisition of the Ghanaian assets of Occidental Petroleum. The company cited the uncertainty as the main reason behind the cancellation. The analysts of the Royal Bank of Canada expect more of the similar announcements to come in soon. 
A likely candidate is Blackstone’s deal with North Sea’s transport Siccar Point. The private equity group was in disagreement over the pricing with Chrysaor before the March crash hit.