Upstream Oil & Gas M&A Deals Drop To Five-Year Low
by: Andrew Schneider, January 3, 2014 5:01:00 am
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.