{"id":14694,"date":"2025-02-05T17:56:45","date_gmt":"2025-02-05T17:56:45","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=14694"},"modified":"2025-02-05T17:56:47","modified_gmt":"2025-02-05T17:56:47","slug":"150b-in-global-upstream-opportunities-ahead-as-shale-consolidation-slows-down-rystad-energy","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/150b-in-global-upstream-opportunities-ahead-as-shale-consolidation-slows-down-rystad-energy\/","title":{"rendered":"$150B in Global Upstream Opportunities Ahead as Shale Consolidation Slows Down – Rystad Energy"},"content":{"rendered":"\n

Upstream merger and acquisition (M&A) activity is expected to slow significantly in 2025 following two years of record-high transactions driven by US shale mergers. The global deal pipeline value stands at approximately $150 billion as much of the sector\u2019s consolidation has run its course, making a return to recent peaks unlikely. Furthermore, geopolitical tension in the Middle East, the ongoing conflict in Ukraine and the UK\u2019s challenging fiscal environment are expected to create notable headwinds for market participants.<\/strong><\/p>\n\n\n\n

North America will continue to lead global M&A activity, driven by nearly $80 billion in upstream opportunities on the market. Elsewhere in the Americas, South American deal value rose from $3.6 billion in 2023 to $14.1 billion in 2024 (excluding Chevron\u2019s acquisition of Hess), largely due to regional exploration and production (E&P) growth ambitions \u2014 and despite Petrobras halting its divestment program.<\/p>\n\n\n\n

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“Last year marked a significant year of consolidation in the US shale sector, with approximately 17 consolidation-focused deals, compared to just three acquisitions in late 2023. Activity was always expected to fall after such dramatic highs, but there is still plenty of business to be done. North America is still a leader in M&A activity and will continue to play a key role in maintaining the market’s health. There is also potential for further upside if US shale gas M&A activity increases, assuming Henry Hub prices remain stable and conducive to dealmaking,”<\/em> Atul Raina, Vice President, Oil & Gas Research, Rystad Energy.<\/p>\n<\/blockquote>\n\n\n\n

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Looking beyond traditional hubs, the Middle East is rapidly emerging as a significant center for M&A activity. Bolstered by liquefied natural gas (LNG) expansion plans, the region recorded its second-highest year of M&A activity since 2019, with deal value reaching nearly $9.65 billion in 2024, following a five-year peak of $13.3 billion in 2022. The surge in activity can be attributed to Middle Eastern national oil companies with major projects under way, such as QatarEnergy\u2019s North Field expansion and ADNOC\u2019s Ruwais LNG.<\/p>\n\n\n\n

The North Field expansion aims to elevate QatarEnergy\u2019s LNG production to 142 million tonnes per annum (Mtpa) by the early 2030s. ADNOC is reportedly considering awarding an additional 5% stake in Ruwais LNG to an international partner. However, ongoing geopolitical tension in other parts of the region may dampen or delay dealmaking.<\/p>\n\n\n\n

M&A deal value in Europe decreased by around 10% year-on-year, to $14 billion in 2024. Around 75% of the regional total centered on the UK, where majors have been adopting an autonomous model strategy to expand their presence in the North Sea. The largest deal this year involved Shell and Equinor merging their UK North Sea upstream portfolios, excluding some of Equinor’s cross-border assets. The combined entity will become the largest producer in the UK North Sea, with a projected output of around 140,000 barrels of oil equivalent per day (boepd) by 2025.<\/p>\n\n\n\n

Despite $8 billion worth of upstream opportunities in the region, the outlook for future M&A activity in Europe remains uncertain due to fiscal policy in the UK, which accounts for 73% of the potential deals, valued at about $5.9 billion. Tightened government fiscal terms for offshore oil and gas threaten to dampen buyer interest. However, combining portfolios that balance deferred tax positions and future expenditure could be an emerging trend in the country\u2019s M&A landscape, given the current fiscal challenges.<\/p>\n\n\n\n

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Upstream merger and acquisition (M&A) activity is expected to slow significantly in 2025 following two years of record-high transactions driven by US shale mergers. The global deal pipeline value stands … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":14209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[5794,7352,2650],"class_list":["post-14694","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-ma","tag-rystad-energy","tag-upstream","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/01\/Offshore-Rig.webp?fit=2121%2C1414&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3P0","jetpack-related-posts":[{"id":8330,"url":"https:\/\/www.oilnewskenya.com\/index.php\/global-upstream-investments-set-for-15-year-low-falling-to-usd383-billion-in-2020-rystad-energy\/","url_meta":{"origin":14694,"position":0},"title":"Global Upstream Investments Set For 15-year Low, Falling to USD383 billion in 2020 – Rystad Energy","author":"","date":"June 15, 2020","format":false,"excerpt":"Following the publication of the upstream industry\u2019s first quarter results, a Rystad Energy analysis reveals a gloomier investment-budget picture than previously thought. Global spending is now forecasted to reach $383 billion this year, the lowest level in 15 years and a staggering 29% decrease of $156 billion compared to 2019.\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/EY-Oil-Check.jpg?fit=927%2C617&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/EY-Oil-Check.jpg?fit=927%2C617&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/EY-Oil-Check.jpg?fit=927%2C617&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/EY-Oil-Check.jpg?fit=927%2C617&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":8078,"url":"https:\/\/www.oilnewskenya.com\/index.php\/global-ep-capex-will-reach-at-least-a-13-year-low-in-2020-as-covid-19-and-price-war-persist-rystad-energy\/","url_meta":{"origin":14694,"position":1},"title":"Global E&P Capex Will Reach At Least A 13-Year Low In 2020 As Covid-19 And Price War Persist \u2013 Rystad Energy","author":"","date":"March 31, 2020","format":false,"excerpt":"Global capital expenditure (capex) for exploration and production firms (E&Ps) is expected to drop by up to $100 billion this year, about 17% versus 2019 levels, under Rystad Energy\u2019s updated base case scenario of $34 per barrel in 2020 and $44 per barrel in 2021. E&P capex in 2019 reached\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/oilnewskenya.com\/wp-content\/uploads\/2020\/03\/rystad-energy.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/oilnewskenya.com\/wp-content\/uploads\/2020\/03\/rystad-energy.jpg?resize=350%2C200 1x, https:\/\/i0.wp.com\/oilnewskenya.com\/wp-content\/uploads\/2020\/03\/rystad-energy.jpg?resize=525%2C300 1.5x, https:\/\/i0.wp.com\/oilnewskenya.com\/wp-content\/uploads\/2020\/03\/rystad-energy.jpg?resize=700%2C400 2x, https:\/\/i0.wp.com\/oilnewskenya.com\/wp-content\/uploads\/2020\/03\/rystad-energy.jpg?resize=1050%2C600 3x"},"classes":[]},{"id":11583,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-silent-as-global-oil-and-gas-investments-expand-to-hit-628-billion-rystad-energy\/","url_meta":{"origin":14694,"position":2},"title":"Africa “Silent” as Global Oil and Gas investments Expand to Hit $628 billion – Rystad Energy","author":"","date":"January 12, 2022","format":false,"excerpt":"Global oil and gas investments will expand by $26 billion this year as the industry continues its protracted recovery from the worst of the pandemic and the hurdles imposed by the Omicron variant. An analysis by Rystad Energy projects overall oil and gas investments will rise 4% to $628 billion\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Sapura-Berani.jpg?fit=1000%2C664&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Sapura-Berani.jpg?fit=1000%2C664&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Sapura-Berani.jpg?fit=1000%2C664&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Sapura-Berani.jpg?fit=1000%2C664&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":7977,"url":"https:\/\/www.oilnewskenya.com\/index.php\/deloitte-oil-and-gas-ma-outlook-shifting-strategies-reshaping-global-transactions-market-in-2020-and-beyond\/","url_meta":{"origin":14694,"position":3},"title":"Deloitte Oil and Gas M&A Outlook: Shifting Strategies Reshaping Global Transactions Market in 2020 and Beyond","author":"","date":"February 13, 2020","format":false,"excerpt":"Key takeaways While total oil and gas deal count declined in 2019, total deal value held up thanks to several mega-deals, primarily in upstream and downstream. Majors and large independents are expected to drive deal making as they continue to optimize their portfolios and divest higher carbon projects. International oil\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/Deloitte.jpg?fit=649%2C370&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/Deloitte.jpg?fit=649%2C370&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/Deloitte.jpg?fit=649%2C370&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":15583,"url":"https:\/\/www.oilnewskenya.com\/index.php\/high-impact-wells-africa-will-continue-to-drive-global-drilling-activity-in-2026\/","url_meta":{"origin":14694,"position":4},"title":"High-impact Wells: Africa Will Continue to Drive Global Drilling Activity in 2026","author":"","date":"January 29, 2026","format":false,"excerpt":"The upstream sector is set to carry strong momentum into 2026, with high-impact wildcat drilling activity expected to remain elevated following a solid 2025. 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