Almost $6 billion worth of mergers and acquisitions have taken place in the UK oil and gas sector in the first half of the year – sending a strong vote of confidence in a basin that has been grappling with the challenges of a major downturn, a new report reveals today (September 6).
Assets changing hands and the increasing diversity in their ownership suggests that the UK Continental Shelf may start to benefit from a badly needed investment boost, says Oil & Gas UK’s Economic Report 2017 – the trade body’s annual review of industry performance and outlook, launched at Offshore Europe: a major industry conference and exhibition taking place this week in Aberdeen.
Although market conditions remain difficult, the report demonstrates that the UK sector is reinventing itself. It is differentiating its offering from competing oil and gas provinces with its efficiency gains, fiscal competitiveness and world-class supply chain.
While investors still want more certainty over Brexit and clarity over the role of oil and gas through a more comprehensive energy policy, the transformation underway is restoring the UK’s position as an attractive basin for investment – and one still supporting over 300,000 UK jobs.
The challenge now is to ensure this renewed interest in the basin translates into tangible activity that could help unlock around £40 billion worth of potential development opportunities known to be in company business plans.