The collective monthly value of asset deals within the upstream oil and gas sector collapsed to $5.55 billion in March, down from $32 billion in February, even as the volume held steady at 35 transactions compared with 34 the previous month.

Where the capital moved

South America dominated March activity, accounting for 55% of total deal value, with North America contributing 16% and Asia 13%. The largest single transaction was the acquisition of SierraCol Energy by Philippines-headquartered Prime Infrastructure for an estimated $1.4 billion, according to Rystad Energy's valuation. Carlyle-backed SierraCol's assets produced an average of around 43,200 barrels of oil equivalent per day between September 2025 and January 2026, and the deal highlights continued appetite from Asian infrastructure capital for Latin American producing assets.

Colombia drew further attention when Parex Resources agreed to acquire the Colombian portfolio of Frontera Energy for $725 million. That figure represents a $124 million premium over the $601 million offer Geopark had tabled for the same assets in January. The competitive dynamic, with two bidders for the same package, suggests that producing assets with near-term cashflow continue to attract competing interest even in a softer pricing environment.

Valuations hold, but discovery assets soften

At the portfolio level, upstream resource valuations in the first quarter of 2026 were broadly stable against the fourth quarter of 2025. Producing assets averaged $4.6 per barrel of oil equivalent (boe), compared with $4.5 per boe in the prior quarter. Under-development resources rose slightly to $3 per boe from $2.5 per boe. Discovery-stage assets, however, moved in the opposite direction, slipping to $1.5 per boe from $1.7 per boe.

For deal structuring purposes, proved reserve pricing is more informative. Valuations for proved (1P) reserves rose to around $10.5 per boe from $8.7 per boe in the fourth quarter of 2025, driven primarily by the Parex-Frontera transaction. Proved-plus-probable (2P) reserves moved to around $8.6 per boe from $6.7 per boe over the same period.

North America falls below $1 billion for the first time in 2026

North American deal value declined by around 97% month-on-month, to about $862 million, marking the first time the total regional deal value has fallen below $1 billion since last June. Canadian Natural Resources' acquisition from Tourmaline of Peace River High assets in Alberta for C$765 million ($559 million) accounted for most of that figure. The deal extends a pattern of inorganic consolidation by Canadian Natural Resources in the country’s shale and oil sands plays, having deployed more than $10 billion in acquisitions primarily across Montney and oil sands assets since 2024.

Tourmaline, for its part, indicated it plans to apply around C$500 million of the proceeds to reduce long-term debt, with C$265 million directed toward infrastructure development in northeast British Columbia over the next two years.

The pipeline ahead

Around $95 billion in upstream opportunities is currently on the market globally, according to Rystad Energy data. North America holds the largest share at nearly $57 billion, or 61% of the total potential pipeline. The structural drivers remain in place: consolidation among small- and mid-cap publicly listed exploration and production companies, private equity firepower, ongoing Montney consolidation, and growing interest from Asian buyers in US liquefied natural gas and gas assets.

Source: Rystad Energy UCube; Rystad Energy E&P M&A dashboard; Rystad Energy research and analysis

This article draws on insights from our latest Rystad Energy report,

"Upstream M&A Trends Report". The full analysis is available to clients via the Client Portal.

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