International oil and gas merger and acquisition activity continued its sluggish pace for a second consecutive year in 2025, reaching just $18 billion, according to a Wednesday report from analytics company Enverus.
The firm attributed the weak deal activity to a shortage of premium resources and depressed oil prices, pushing transaction values far beneath the typical $60 billion annual average.
“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.
South American markets dominated announced deal values, representing half of all international transactions. This activity centered around consolidation within Argentina’s Vaca Muerta shale region and strategic repositioning across Brazilian markets.
Argentina experienced its most active merger and acquisition period since 2014, driven by regional specialists expanding operations after international oil companies departed. Vista Energy’s acquisition of Petronas Argentina for approximately $1.45 billion in April marked a significant transaction.
In Brazil, major oil companies and government-owned entities divested mature offshore properties to local operators while simultaneously increasing investments in deepwater exploration projects.
Enverus anticipates continued weakness in international upstream deal activity unless additional development-ready resources enter the marketplace. However, the firm notes that rising crude prices driven by geopolitical tensions could enhance short-term cash flows available for acquisitions.
Market volatility may create challenges by expanding the gap between buyer and seller price expectations, potentially reducing transaction volume until market conditions stabilize.
“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.
