Global dealmaking in oil and gas upstream was muted in 2025, Enverus says

March 11 (Reuters) - Dealmaking in the international upstream oil and gas market remained subdued for the second straight year in 2025, totaling just $18 billion, analytics firm Enverus said on Wednesday.

Fewer high-quality resources and lower oil prices limited the value of mergers and acquisitions to well below the historical average of $60 billion, the firm said in a report.

"International M&A is being shaped less by appetite and more by availability," said Andrew Dittmar, principal analyst at Enverus.

"Majors have pulled back significantly from the M&A market and focused on organic expansion. Independent and private buyers have stepped in to acquire mature assets and smaller interests these firms are shedding," Dittmar added.

Latin America accounted for half of the announced international deal value, led by consolidation in the Vaca Muerta shale formation in Argentina and portfolio repositioning in Brazil.

Argentina posted its busiest M&A year since 2014, as regional specialists expanded following exits by international oil companies. In April, Vista Energy bought Petronas Argentina for about $1.45 billion.

Oil majors and state-owned firms sold mature offshore assets to domestic operators in Brazil, while increasing exposure to deepwater projects.

Enverus expects international upstream M&A to remain subdued unless more development-stage resources come to market, although higher crude prices as a result of geopolitical events could improve near-term cash flow to fund M&A.

However, volatility in commodity prices could widen bid-ask spreads, or the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, and lead to a downturn in transactions until stability returns.

"If higher prices prove durable it will cause a resurgence of interest in expanding global supply, unlocking more development projects and broadening buyer appetite," Dittmar said.