Around £4.6 billion of mergers and acquisitions took place in the UK’s oil and gas sector in the first half of 2017.

That’s according to a new report from Oil & Gas UK, which says this is a strong vote of confidence for industry, which has faced a significant downturn in recent years.

The report suggests although market conditions remain difficult, the UK sector is reinventing itself with improved efficiency, competitiveness and a more developed supply chain.

This means despite low levels of exploration and drilling remaining a serious concern, firms are better placed to cope with the lower oil price environment.

It says the challenge going forward is to unlock around £40 billion worth of potential development opportunities.

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “There are billions of barrels of oil and gas still to go after in our own backyard.

“Government and industry must make the most of the opportunity offered by our sector.”