* Australian bank move follows drop in global M&A activity
* Several members to switch to midstream advisory (Adds details of current activities)
By Ron Bousso
LONDON, Oct 21 (Reuters) - Australia's top investment bank Macquarie Group has closed its London-based upstream oil and gas advisory after a sharp drop in global deal making in recent years, banking sources said on Friday.
The business, which oversaw the oil and gas production sector in Europe, Middle East and Africa, and which consisted of eight employees, was closed this week.
Three members of the upstream team will move to the Macquarie Capital's midstream oil and gas investment service under Ed Winter, which focuses on energy infrastructure such as pipelines and storage, the sources said.
A Macquarie spokeswoman declined to comment.
The upstream banking desk was led up until last May by Jon Fitzpatrick, who left to establish advisory boutique Gneiss Energy together with other former Macquarie bankers, the sources said.
Merger and acquisition activity in the sector outside the United States sharply declined following the oil price crash in mid-2014. International deals in the third quarter of 2016 reached $7 billion, the lowest level since 2008, according to consultancy 1Derrick.
Activity in the sector was nevertheless expected to pick up in the coming months amid a recovery in oil prices that narrowed the asset valuation gap between buyers and sellers.
Macquarie Capital's Resources team, under Raj Khatri, was a joint book runner in this week's 70 million pound share placing by UK North Sea exploration and production company Hurricane Energy.
Macquarie continues to have exposure to the oil sector through its commodities and financial markets team that runs hedging programmes and reserves based loans for companies. (Reporting by Ron Bousso; Editing by Elaine Hardcastle)
Recommended Reading
Enterprise Targets FID for SPOT Project by End of 2024
2024-05-01 - Enterprise Products Partners’ co-CEO disputed capex figures reported in the media regarding its Sea Port Oil Export Terminal.
US Reforms Green Law to Speed Clean Energy, Infrastructure Permits
2024-04-30 - The reforms are the second and final phase of adjustments to the National Environmental Policy Act, or NEPA, by the Biden administration.
Canadian Railway Companies Brace for Strike
2024-04-25 - A service disruption caused by a strike in May could delay freight deliveries of petrochemicals.
Enterprise’s SPOT Deepwater Port Struggles for Customers
2024-04-25 - Years of regulatory delays, a loss of commercial backers and slowing U.S. shale production has Enterprise Products Partners’ Sea Port Oil Terminal and rival projects without secured customers, energy industry executives say.
Report: Crescent Midstream Exploring $1.3B Sale
2024-04-23 - Sources say another company is considering $1.3B acquisition for Crescent Midstream’s facilities and pipelines focused on Louisiana and the Gulf of Mexico.