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

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

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