The days of huge oil industry takeovers are over, the chief executive of BP has told The Sunday Times.
Speaking to the English newspaper, Tony Hayward opined that there is “no industrial logic at all” to the mega mergers witnessed in the oil sector a decade ago.
“We need access to new resources and we need access to new customers. Combining with another oil giant gives us neither,” said Hayward.
“If you put ourselves and Shell together you don’t add to the resource base,” he added.
Hayward believes that future will instead see the major companies forming stronger partnerships with the new generation of state owned rivals and governments in the resource rich countries, most of which are to be found in the Middle East.
Speculation has been rife in the industry that major consolidations, such as those which brought together BP and Amoco, Exxon and Mobil and Chevron and Texaco, will make a return.
