Global market has $300bn worth of potential deals – Wood Mackenzie

The firm adds that the opportunities which currently abound are for the financially buoyant, as seen in Shell's recent $82 billion offer for the acquisition of BG.

Workers on a Nigerian oil rig (File Photo)

The global oil and gas market currently has potential for 340 deals worth over $300 billion, according to a report by global consultancy firm, Wood Mackenzie.

Wood Mackenzie however noted that activity has collapsed, with buyer and seller expectations remaining far apart, and buyers of material size limited to the most financially secure.

“The $300 billion question is: with Shell having made the first move, who will follow?" the report asked.

According to the reports, the rapid and aggressive response by oil and gas companies to low oil prices has stabilised the sector with the price required for companies to be cash flow neutral in 2015 dropping by over $20 per barrel to $72 per barrel.

The firm added that cost reduction would be necessary to achieve cash flow neutrality if oil prices remain around current levels.

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