Upstream M&A activity in Latin America has been able to largely withstand falling oil prices that stalled deal flow in many regions of the world, with deal counts largely unaffected.
That is one of the key findings of a new report on Latin America released this week by the Daily Oil Bulletin, Evaluate Energy and Sproule.
“While motivations for various deals changed and individual deal values may have dropped in light of the price downturn, the number of deals agreed over time shows little to no correlation with the falling oil price,” said Darrell Stonehouse, report co-author and DOB’s special projects editor. “In fact, looking at deal counts alone, it would be near impossible to pinpoint when the price downturn actually took place.”
The report, entitled Latin America: Assessing The Impact Of Oil Prices, Energy Reforms And National Oil Companies On Deal Activity, includes analysis of Brazil, Mexico, Argentina and Colombia. It is available for download here.
Latin America is one of the world’s fastest growing upstream environments. With major producing countries in the region racing to attract investment, the deal counts illustrate that even in the toughest of investment environments there is a willingness to deal.
Added Stonehouse: “This attraction to Latin American upstream assets, together with strategic energy reforms being implemented by Latin American governments, should mean that deals for Latin America’s upstream assets would continue to generate headlines in the near future.”