The Strategist

M&A volume in global oil and gas may reach $150 bln by the end of 2024

05/07/2024 - 10:24

According to Rystad Energy analysts, the number of mergers and acquisitions (M&A) in the worldwide oil and gas business in the first quarter was the most in the previous five years, and agreements worth an additional $150 billion may be signed in the remaining months of 2024.

Deal value since the year's start has topped $64 billion, which is 2.5 times greater than it was in the first quarter of previous year.

Approximately 83% of the global M&A volume, or $54 billion, occurred in North America.

Analysts forcast that this region will continue to lead in M&A. Prior to this, businesses like Occidental Petroleum and Chevron Corp. declared their plans to sell assets valued at $4.5–6 billion and $10–15 billion, respectively, in the upcoming years.

This year, there was a significant amount of M&A activity in other regions as well, with the volume rising by 5% to $10.5 billion. BP Plc, Chevron, Shell, and TotalEnergies were the leading oil and gas corporations with transactions totaling $5.2 billion. According to the Rystad research, at the same time, the most in-demand asset class was gas production assets, accounting for almost 66% of all deals.