Major oil companies have been withdrawing from the ageing North Sea for years to focus on bigger prospects elsewhere. (EPA Images pic)LONDON: Tax advantages and high energy prices will drive further consolidation in Britain's North Sea oil and gas fields after a flurry of deals this year, 11 industry analysts and bankers said.
A rise in oil and gas prices to multiyear highs caused by disruption linked to the US-Israeli war with Iran has generated huge amounts of cash for the industry, which has been reporting results this week.
However, the price rises have also increased inflation for everyone, sharpening the appetite for scale to justify production in the mature North Sea Basin, which the British government views as a secure, domestic supply source.
