International deals worth nearly $20 billion have unraveled in recent weeks for Middle Eastern energy giants targeting global expansion, raising fresh questions over how far, and how fast, Gulf national oil companies can expand abroad in key markets.

On Sept. 23, news arrived that Saudi Aramco’s talks to invest over $1 billion in Spanish energy firm Repsol’s renewables arm had stalled, coming days after a consortium led by the Abu Dhabi National Oil Company (ADNOC) walked away from an $18.7 billion bid for Australian natural gas producer Santos. 

Both Gulf players have proactively sought to expand internationally in recent years, a drive that has netted assets in the United States, Asia and beyond amid their efforts to diversify and navigate an energy transition away from fossil fuels. 

Yet, this push has also produced a string of stalled deals, a trend now headlined by ADNOC’s high-profile attempt to acquire Santos via XRG, its newly launched international investment arm. The transaction would have ranked among the year’s largest. The deal’s demise dealt a blow to ADNOC’s ambitions, but it is fair to say that it collapsed amid a tough climate.