India Inc Goes Abroad - MAPE Advisory Group

The Industry Context
Oil & Gas Sector
Oil & Gas sector accounts for 5.3% of total deal volume and nearly 18.6% of deal value.
Value (US$mm)
900
800
700
600
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 Q106
Source: Bloomberg, Merger Markets, Mape
GAIL & ONGC account for all the deals made in the sector. Average deal size in the sector is US$122.1mn, far above the average of
US$35.1mn.
Hydro-carbon business is essentially global in nature that all the big players have traditionally been global rather than local. ONGC's
significant foray into international markets signals its transformation from a large domestic player to an emerging global player. ONGC
is expected to continue its foray in international markets with a view to securing equity oil.
Future deals can be expected from downstream players like Indian Oil Corporation
Select Transactions in the Sector
Value No of Deals
Acquirer Target Country Date Deal Size
(US$mn)
Remarks
Gail India Fayum Gas Co. Egypt Jan-04 9.7 19% in the Egypt based city gas
distribution company
Gail India NATGas Egypt Aug-04 19.0 15% in Egypt based natural Gas company
Gail India China Gas Holdings Ltd. China Feb-05 31.0 10% stake in the Chinese company
ONGC Sakhalin-1 PSA Project Russia Dec-00 323.0 100% in the Sakhalin project from OAO
Rpsneft Oil Company
ONGC Greater Nile Oil Project Sudan Oct-02 766.1 25% in the project from Talisman Energy
Co
ONGC 2 Sudanese Oil Interests Sudan Aug-03 136.5 100% interest in assets from OMV AG
16
6
5
4
3
2
1
0
No. of Deals