2017 – The Year of Mergers and Acquisitions Says Wood Mackenzie
Energy consultants Wood Mackenzie have predicted that 2017 will be a year of North Sea mergers and acquisitions.
Wood Mackenzie pointed out that a number of large deals signed late last year highlighted an upturn in market confidence.
Oil majors divestment programmes and private equity firms are expected to have the biggest impact on North Sea mergers and acquisitions this year.
“We expect 2017 will be a record year for M&A activity in the UKCS, the biggest year since 2012,” said Fiona Legate, senior analyst at Wood Mackenzie.
Wood Mackenzie released this information in it’s report: UK Upstream: 5 Things to Look for in 2017. Indicating how the OPEC output cuts would enable a modest recovery in the UK North Sea.
Oil companies are expected to begin to re-focus on exploration and drilling again after levels slipping to a 50 year low in 2016.
Ms Legate said: “The majors are having a last look ahead of mature and costly infrastructure timing out.”
Fifteen exploration wells are planned for the UK Continental Shelf (UKCS) in 2017.
UKCS production is forecast to rise for the third year in a row as 14 new fields are scheduled to come online in 2017.
