Total CEO Patrick Pouyanne said Royal Dutch Shell’s recent purchase of BG Group is not putting any pressure on the French energy giant to ink new merger or acquisition deals.
“Total can do anything. It could do nothing, because we don’t need it,” Pouyanne told Reuters.
The recently appointed CEO added that Total can act if the “opportunity arises” but the company is focused on maintaining its “very strong organic growth” and its current investment program.
The remarks comes on the heels of Shell’s planned $70 billion acquisition of UK-based BG Group.
Last November services player Halliburton agreed to buy fellow Texas rival Baker Hughes for $34.6 billion in cash and stock, or $78.62 per Baker Hughes share.
Many analysts assumed firms with solid balance sheets would go on a buying spree and scoop up cash strapped rivals as oil prices sunk to multiyear lows last year.
However the expected flood of megadeals turned into a trickle during the first quarter as oil prices showed no signs of climbing back to the previous highs and companies focused on cost cutting measures.
“Volatility is not the friend of M&A, and we don’t expect significant activity to occur until the volatility has subsided,” an unnamed baker told the Financial Times.
According to a recent report by Evaluate Energy the value of global upstream oil and gas mergers and acquisitions plummeted to $7.1 billion during the first quarter of 2015, a 79 percent drop from the same period last year.
“Even though the oil price is resting at attractive levels right now for buyers, it’s clear that this quarter has come too early for many to make opportunistic acquisitions,” the report said.