A flurry of North Sea deals is welcome news for an industry facing ongoing challenges, Bob Ruddiman, head of energy and natural resources at legal firm Pinsent Masons, said yesterday.
Mr Ruddiman, who is based in Pinsent’s Aberdeen office, was speaking after Serica Energy revealed it had completed the acquisition of an 18% stake in the Erskine field.
He said: “The UKCS (UK continental shelf) more than most oil producing regions has had to adapt to the constraints of a lower oil price which no one could foresee.
“Against the backdrop of the recommendations of the Wood Review and the formation of the new Oil and Gas Authority, there is an understanding that the UKCS has a bright future if rigorous attention is paid to improving operating efficiency.
“It is heartening to see there are companies and investors willing not only to support the UKCS but who grasp this need to work together to ensure we are discussing the successes, having looked at new ways of doing things and enjoying the benefits of innovation in its widest sense, rather than looking back at what might have been.”
Other deals announced this week include Premier Oil taking full ownership of the Solan field west of Shetland, Independent Oil and Gas gaining complete control of the Skipper discovery in the northern North Sea and Dutch firm Oranje-Nassau Energie snapping up 50% of Sean in the southern sector.
The transactions buck a trend noted in PwC’s latest Deals Index, with the professional services firm highlighting a slowdown in the rate of mergers and acquisitions in the oil and gas industry since the slump in crude prices.
But David Leslie, head of corporate finance for PwC in Scotland, said deal activity is likely to pick up again due to “the combination of favourable market dynamics and strong international growth potential” as oil prices recover.
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