Upstream oil and gas deal activity in June saw a $4.3billion decrease in comparison with the previous month.
Research and consulting firm GlobalData said work, including capital markets and mergers and acqusitions, totalled $19.3billion from 125 transactions in June, while in May the total was $23.6billion across 119 deals.
Analysts said Europe, the Middle East and Africa led the global acquisitions market in terms of value last month with a 39% regional share totalling $4billion.
This came from 18 deals, of which 14, with a combined value of $4 billion, were announced, and four, with an undisclosed value, were completed.
The majority of M&A activity in the region was centred on offshore assets, which delivered the greatest share of deal volume with 10 deals in June 2015.
Matthew Jurecky, GlobalData’s head of oil & gas research and consulting, said:“M&A momentum continued in June with Emirates National Oil Company proposing a buy-out of Dragon Oil, BP buying a stake in one of Rosneft’s Siberian fields, and Wintershall selling a package of North Sea assets to Tellus Petroleum (Tellus).”
“Market conditions will continue to fuel a desire for M&A. After a failed attempt years ago, Emirates National Oil Company is another case of a company taking advantage of depressed asset values to consolidate ownership in one of its positions, Dragon Oil.
“On the other hand, Wintershall is disposing of lower growth assets, which for Tellus is an opening into a stable and dependable production base.”
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