Positive signs for UKCS as 2017 deals hit $8bn

Merger and acquisition activity on the UK Continental Shelf (UKCS) exceeded $8 billion (£6bn) this year, with positive prospects for the whole industry, according to a new study.

Oil & Gas UK said the recent M&A activity increase should help attract new investment over the next two years. It also cited signs that various key projects could win approval in the new year, “offering a more positive outlook for the whole industry in 2018”.

Mike Tholen, Oil and Gas UK’S upstream policy director, said the high level of deals “must be seen as a sign that confidence is returning the basin… we expect that M&A activity will continue into 2018 as established players can more easily divest their noncore assets to companies better suited to invest in them and extend field life”.

He added that when an asset changes hands, it can extend average field life by nearly five years. “I am confident that trend will continue to shape the future of the UKCS.”