Around 96% of senior executives in the oilfield services industry predict the UK Continental Shelf (UKCS) recovery to “peak levels of profitability”.
Almost half – 48% – of the 200 bosses surveyed expect the UKCS to rebound in five years while 28% predict recovery within three years subject to a general improvement in oil price.
A majority (67%) of them believe the UK would be likely to yield opportunity for buyers in the next three years, according to a survey by Pinsent Masons.
Despite the volatility in oil prices, around 86% expect a surge of deal activity in the next 12 months and 70% said they are considering an acquisition during the same period.
Respondents also said Singapore, Mexico, Indonesia, China and Nigeria are the most attractive emerging markets presenting investment opportunities against the backdrop of continued oil price volatility.
David McEwing, Partner in the oil and gas team at Pinsent Masons, said: “Much of the discourse around oil and gas deals has focused on the majors and how they will respond to a more volatile environment. However it shouldn’t be forgotten that the global oilfield services sector is on course to be worth $144bn (£97.92bn) by 2020 and is a significant employer and wealth creator.
“Corporates are clearly looking to build out their international propositions and invest in technology which will maximise efficient recovery. It’s no surprise that the UK stands out in that regard given the industry’s focus on innovation and deep sea exploration – not least when we’re seeing more of those types of projects in Asia.”