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The Middle East is rapidly emerging as a significant centre for merger and acquisition (M&A) activity in the oil and gas upstream sector, Norway-based Rystad Energy said in a new report.
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 $9.65 billion in 2024, following a five-year peak of $13.3 billion in 2022. No estimates were given for 2025.
Rysatd said surge in activity could be attributed to Middle Eastern national oil companies with major projects underway, such as QatarEnergy’s North Field expansion and ADNOC’s Ruwais LNG.
The North Field expansion aims to elevate QatarEnergy’s LNG production to 142 million tonnes per annum (Mtpa) by the early 2030s.
The UAE’s ADNOC is reportedly considering awarding an additional 5 percent stake in Ruwais LNG to an international partner. However, ongoing geopolitical tension in other parts of the region may dampen or delay dealmaking, the report said.
Overall, upstream 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 is estimated at $150 billion, given that much of the sector’s consolidation has run its course and a return to recent peaks remains unlikely, the research company said.
(Writing by P Deol; Editing by Anoop Menon)
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