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Oil and Gas M&A: Q&A

Image: Oil & Gas

Bracewell’s Darren Spalding offers a Q&A guide to mergers and acquisitions in the oil and gas sector as part of Practical Law’s recent energy sector content launch.

The Q&A gives a high-level overview of the factors affecting asset and share acquisitions in the sector and the key considerations for buyers and sellers. It covers risks and motivations for the parties; acquisition and consideration structures; the due diligence process; third-party consents; and liability and indemnity clauses in sale and purchase agreements.

For deal-doing in the upstream segment of the industry, Darren identifies a number of the key negotiation points, including the importance of a “clean break” for a seller, the prevalence of material adverse effect provisions and the importance of tax losses and capital allowances. For midstream and downstream transactions, the Q&A sets out the manner in which environmental liabilities may be allocated and the distinction from the treatment of environmental matters in upstream deals.  

Click here for the link to the article on Practical Law.