EY: The value of oil and gas transactions rose in 2018 due to record of 11% in downstream


The total value of oil and gas transactions increased by 79.7 billion USD in 2018 to 426.8 billion, despite a 18% drop in transaction volumes. This is one of the conclusions of the EY Global Oil and Gas Transaction Review 2018, which shows that while in the first two quarters of 2018 there was a greater appetite for transactions facilitated by rising oil prices, prudence returned to the second semester of the year due to lower oil prices at 2015 levels.

Downstream activity posted record levels in 2018. The value of transactions reached 82.5 billion USD (up 11% from 2017), while volume was of 172 transactions (also up 11% 2017). In line with developments in recent years, North America and Europe have remained the most active regions, accounting for 88% of the value of transactions and 69% of the volume of transactions.

„Romania expects to clarify the legislative and regulatory framework for new hydrocarbon extraction activities, while gas producers are considering the opportunity to relaunch petrochemistry in the country, waiting for clarifications and improvements of the functioning of the internal natural gas markets. Once the predictability and clarity demanded by investors is reached, transactions will not be delayed,” says Valeriu Binig, Senior Advisor of EY Romania.

The value of upstream transactions declined by 21%, from 164.8 billion USD to 130.3 billion, in 2018, while the number of transactions declined by 26%.


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