-- Global upstream oil and gas dealmaking slowed sharply in March, with the total value of transactions falling to $5.55 billion from $32 billion in February, even as the number of deals remained largely steady, Rystad Energy said in a note on Wednesday.
The sector recorded 35 transactions in March, compared with 34 the previous month, indicating buyers remained active but focused on smaller acquisitions, it said.
South America accounted for 55% of total deal value during the month, while North America contributed 16% and Asia 13%.
The largest transaction was Philippine-based Prime Infrastructure's acquisition of SierraCol Energy for an estimated $1.4 billion.
SierraCol, backed by global investment firm, The Carlyle Group, produced about 43,200 barrels of oil equivalent per day between September 2025 and January 2026. The deal highlights continued Asian investor interest in Latin American producing assets.
Colombia also attracted attention after Parex Resources agreed to buy Frontera Energy's Colombian portfolio for $725 million, topping an earlier $601 million bid from Colombian oil and gas company, GeoPark. The competing offers suggest that producing assets with near-term cash flow remain attractive despite weaker commodity prices.
Rystad said producing asset valuations held relatively stable in the first quarter of 2026. Producing resources averaged $4.60 per barrel of oil equivalent, up slightly from $4.50/boe in the previous quarter, while under-development assets rose to $3/boe from $2.50/boe.
Discovery-stage assets weakened, however, slipping to $1.50/boe from $1.70/boe, reflecting more cautious sentiment toward higher-risk exploration projects.
North American deal value dropped roughly 97% month-on-month to about $862 million, marking the first time regional activity fell below $1 billion since June 2025.
Most of that total came from Canadian Natural Resources' C$765 million ($559 million) acquisition of Alberta assets from Tourmaline, extending a broader consolidation trend in Canada's shale and oil sands sector.
Despite the March slowdown, Rystad estimates about $95 billion in upstream assets remain on the market globally, with North America accounting for nearly $57 billion of potential deals.