While UK energy policy clarity will allow some operators to move ahead with their plans, for other exploration and production (E&P) firms it will crystallize their decision to exit the market. The UK’s decision to maintain the Energy Profits Levy, coupled with lower oil prices, could lead to increased M&A activity in 2026.
“We expect the trend of consolidation to continue and for more M&A activity in the North Sea next year, as E&P companies look to acquire assets to boost production and increase profitability by utilizing tax losses,” Bracewell’s Eimear Murphy told Upstream.
“Lower crude prices may also create M&A opportunities for players looking to acquire assets that may struggle in a lower price environment,” she said.
