March 11 (Reuters) - Dealmaking in the international

upstream oil and gas market remained subdued for the second

straight year in 2025, totaling just $18 billion, analytics firm

Enverus said on Wednesday.

Fewer high-quality resources and lower oil prices limited

the value of mergers and acquisitions to well below the

historical average of $60 billion, the firm said in a report.

"International M&A is being shaped less by appetite and more

by availability," said Andrew Dittmar, principal analyst at

Enverus.

"Majors have pulled back significantly from the M&A market

and focused on organic expansion. Independent and private buyers

have stepped in to acquire mature assets and smaller interests

these firms are shedding," Dittmar added.

Latin America accounted for half of the announced

international deal value, led by consolidation in the Vaca

Muerta shale formation in Argentina and portfolio repositioning

in Brazil.

Argentina posted its busiest M&A year since 2014, as

regional specialists expanded following exits by international

oil companies. In April, Vista Energy bought

Petronas Argentina for about $1.45 billion.

Oil majors and state-owned firms sold mature offshore assets

to domestic operators in Brazil, while increasing exposure to

deepwater projects.

Enverus expects international upstream M&A to remain subdued

unless more development-stage resources come to market, although

higher crude prices as a result of geopolitical events could

improve near-term cash flow to fund M&A.

However, volatility in commodity prices could widen bid-ask

spreads, or the difference between the highest price a buyer is

willing to pay and the lowest price a seller is willing to

accept, and lead to a downturn in transactions until stability

returns.

"If higher prices prove durable it will cause a resurgence

of interest in expanding global supply, unlocking more

development projects and broadening buyer appetite," Dittmar

said.