Upstream Oil & Gas M&A Deals Drop To Five-Year Low

Merger and acquisition activity in the upstream oil and gas industry plunged nearly 50% in 2013, compared to the value of such deals in 2012.

The value of global oil and gas M&A deals fell to $136 billion in 2013. That’s the lowest level for such deals since the 2008 recession.

Many companies were focused on digesting the more than $600 billion in deals completed between 2010 and 2012. Christopher Sheehan is director of energy M&A research for economic analysis firm IHS.

“You had [a] record level of global upstream M&A transaction value in 2012 — more than $250 billion worth transactions — including some very large corporate transactions, headlined by CNOOC buying Nexen for more than $20 billion. There’s no corporate deals over $5 billion dollars in 2013.”

The industry’s largest M&A transaction of the year was Devon Energy’s purchase of GeoSouthern Energy’s Eagle Ford Shale assets for $6 billion. GeoSouthern is headquartered in The Woodlands.


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

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