The flurry of deals has even prompted analysts at consultancy Wood Mackenzie to describe the UK North Sea as “one of the hottest markets globally”, buoyed by the recent recovery in prices.
Neivan Boroujerdi, WoodMac’s principal analyst for Europe upstream said the “blockbuster” start to the year has seen spending reach $2.7 billion, already surpassing last year’s total.
“Despite the UK’s maturity, the deals highlight the attractiveness of the country’s relatively low headline tax rate, which enables assets to generate significant free cash flow at current prices,” Boroujerdi said.
WoodMac estimates another $5 billion-worth of assets could change hands this year.