Oil sector mergers hit $6bn last year

Mergers and acquisitions by Chinese oil and natural gas companies are expected to have grown sixfold to US$6 billion in 2005 as oil and gas industry M&A activity tripled in value to US$160 billion, the Financial Times reported. A new report, to be released on Wednesday by Harrison Lovegrove, the UK-based corporate advisers, and John S Herold, the US research firm, is expected to show the highest level of M&A activity since 1998. More than 240 deals were struck worldwide in 2005, up 40% from 2004, as oil industry executives and government leaders went on a frantic global buying spree under rising pressure to secure the oil and gas needed to fuel economic expansion.