The upstream oil and gas sector is going through significant change and transition due to current market uncertainty and macro environment volatility. The oil majors are exiting mature basins where they have historically been the drivers of investment and activity. This is particularly apparent in the North Sea, where they have been willing sellers of mature production and brownfield projects in order to manage balance sheets, meet ESG targets and focus on larger scale projects in core growth areas. They leave behind opportunities that, although immaterial to majors, can still create material value to small and mid-caps. The buyers, which have mostly been backed by private equity, are looking to extract near term value from these transactions focussing on opportunities that have historically been overlooked by the majors given they didn’t meet their competitive and stringent global investment criteria.
Are we already starting to see the majors do something similar in SE Asia? What opportunities exist and what challenges do willing buyers face? What learnings can be taken from the recent flurry of M&A activity in the North Sea?
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