In transition

Abstract

As we move into 2018, there is renewed optimism in the sector. Steady oil prices led to a 50% increase in M&A activity in 2017 compared to 2016 and supported new money deals and refinancings. The oil and gas industry continues to reshape itself for the next generation with new deal structures, operating models and sources of finance. Companies face new challenges – climate change litigation, cyber security risks and decommissioning disputes. Familiar challenges remain renegotiation with governments, and joint venture disputes prompted by contrasting balance sheets and risk appetites. There are new opportunities in cleaner energy and in harnessing the benefits of standardisation and digitalisation.