As several major U.S. E&P companies pull out of the Gulf of Mexico, more and more foreign oil companies are starting to turn their attention to U.S. assets.

Even with relatively small reserves compared with other oil-producing regions, the political stability and low-risk of U.S. assets are drawing buyers here, Tristone Capital Inc. managing director David Marcell told some 500 attendees at the sixth annual A&D Strategies and Opportunities conference in Dallas, presented by Oil and Gas Investor and A&D Watch.

Foreign interest has been greatest in the Gulf of Mexico, where there is only one lease-holder (the U.S. Minerals Management Service) to deal with. Several U.S. super-independents have been selling their offshore assets and moving inland. Devon Energy Corp., Apache Corp., W&T Offshore and EnCana Corp. were among the companies selling off Gulf of Mexico assets in 2005 and 2006.

Waiting there to snap up the Gulf assets were foreign E&P companies. Japan-based Nippon ended up with Devon's assets, Norwegian E&P Statoil walked away with EnCana's properties and BP Plc took Apache's package. Just this year, Italy-based ENI acquired offshore assets from Dominion Resources Inc.

Marcell said the internationals are comfortable with U.S. big-block assets. Other non-U.S. companies buying in the Gulf are Nexen, Repsol, Norsk Hydro, Marubeni, Sumitomo, Mitsui & Co. and Woodside.

He said, "I wouldn't be surprised if they move more and more onshore."

In September, Sojitz Corp. became the first Japanese E&P company to acquire assets onshore the U.S. If Marcell's views on the changing dynamics of acquisitions hold up, this Japanese onshore buyer certainly won't be the last.

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