GlobalData’s latest thematic report, ‘Global M&A Deals in Q1 2022 – Top Themes by Sector’ provides a comprehensive review of the oil and gas M&A activity during the first quarter of 2022 and highlights the key themes that attracted a bigger share of the deals in this period.

In Q1 2022, the oil and gas industry saw a $59bn worth of deals happening, down by about 41% from Q4 2021. The count of billion-dollar-plus deals dropped to 11, compared to 26 such deals in the previous quarter. The decline was observed across most regions except China.

The upstream sector contributed to the highest aggregate M&A transaction value of $21bn in Q1 2022, driven primarily by the shale theme. The US shales saw a significant number of deals being undertaken in this period owing to a rise in the oil prices. One of the prominent deals during this time was the $6bn merger of Oasis Petroleum and Whiting Petroleum. The combined entity will have net acreage of approximately 972,000 acres in the Williston Basin shale play.

The midstream sector recorded the highest number of deals by volume in Q1 2022, although the total deals value declined from Q1 2021. Belgian company Fluxys and US energy investor EIG have jointly acquired a majority stake in GNL Quintero, and was one of the prominent deals in the midstream sector in Q1 2022. GNL Quintero operates the largest regasification terminal in Chile.

Whereas downstream saw a 6% rise in deal value in Q1 2022 when compared to Q4 2021. Deal making in this sector was mostly related to market consolidations in the distribution and retail space.

According to GlobalData, Oasis Petroleum, Whiting Petroleum, CNOOC, Enterprise Products and Fluxys were among the key dealmakers in the oil and gas industry in Q1 2022.