2020 upstream deals reach “almost unthinkable” total of $93 billion

Source: Evaluate Energy

Evaluate Energy’s new M&A report shows that $93 billion in upstream oil and gas deals were agreed in 2020, with the bulk of the sum found in low-premium corporate mergers in North America agreed in the latter period of the year.

The full report, which looks at all major deals and investment trends across a remarkably turbulent year for the oil and gas industry, is available for free download at this link.

Total 2020 deal values dropped 48% on the $180 billion secured in 2019 – making it the lowest annual spend since 2015. What may be more surprising is that it got as high as $93 billion by year’s end.

“While it is easy to focus on the relatively low value and equally low deal counts, getting anywhere approaching a total of $100 billion seemed almost unthinkable in the early stages of the pandemic,” said report author Eoin Coyne, senior M&A Analyst at Evaluate Energy. “Take Q2 for instance; when demand was being destroyed and oil temporarily traded at a negative value, the deal total for that three-month stretch stood at just $4 billion.”

This year’s annual upstream M&A review from Evaluate Energy analyses the major deals from 2020, including:

  • Acquisitions by Chevron, ConocoPhillips and Devon Energy in the U.S.
  • The major Canadian oilsands deal that saw Cenovus Energy merge with Husky Energy
  • A multi-billion reverse-takeover arrangement in the U.K. North Sea
  • Total’s recent asset sale in West Africa

Download the report for free at this link.

Evaluate Energy is headquartered in London and specializes in global oil, gas and renewable energy intelligence. It is a sister brand of the Daily Oil Bulletin.

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