The Oil and Gas sector is seeing a sharp decline in mergers and acquisitions, with a 48.6% drop in the first half of 2026, signaling increased caution and selectivity among investors.
The landscape for mergers and acquisitions in the dynamic Oil and Gas sector showed a notable slowdown during the first six months of 2026. A report by KPMG indicates that the number of deals fell significantly by 48.6% compared to the same period last year, dropping from 35 transactions in 2025 to just 18 this year. This decline is also reflected in the total transaction value, which fell from R$ 35 billion to R$ 20 billion.
The study highlights that, amid this period of lower activity, the participation of private equity and venture capital firms was limited, with only one operation involving such investors. These figures point to a moment of greater deliberation and strategy within the energy market.
Focus on Selectivity and Quality Assets
KPMG partner Paulo Guilherme Coimbra emphasizes that the first-half data highlights a more selective approach from investors in the sector.
Quality assets with solid fundamentals, operational efficiency, and clear prospects for value creation tend to capture the most investor interest.
He points out that segments such as fuel distribution, which saw the highest transaction volume in the second quarter of 2026, and oil exploration are areas likely to drive new transactions in coming cycles. This analysis suggests that despite the overall decline, there are market niches with potential to attract investment.
Predominance of Cross-Border Operations
Of the 18 mergers and acquisitions completed between January and June 2026, 7 were domestic, where companies within the same country joined forces. However, the number of cross-border transactions (between companies from different countries) was higher, totaling 11 deals. This prevalence of international operations may indicate a search for foreign markets and technologies to complement portfolios or expand operations.
Notable deals during the period include Mercuria‘s acquisition of Raízen Argentina from Raízen for R$ 7.2 billion. Another significant transaction was Petrobras‘ acquisition of a 100% interest in a portion of the Argonauta Field in the Campos Basin, purchased from Shell, ONGC, and Brava Energia for R$ 1.4 billion.
Implications for the Future of the Sector
The slowdown in Oil and GasM&A can be interpreted as a reflection of global economic uncertainties, volatility in energy commodity prices, and increasing pressure for energy transitions. The trend toward greater selectivity and a focus on high-performance assets indicates that companies seeking capital or strategic partners will need to demonstrate stability and a robust business plan to attract investment.
The outlook suggests that the energy market, despite the challenges, continues to seek optimization and growth, albeit more judiciously. Future operations will likely be more focused on strategic synergies and the development of technologies that promote sustainability and operational efficiency.
