North Sea upstream review of 2019: a bright end to a cloudy decade

In this report, we look at the highlights of an upbeat end to the decade for the North Sea (UK, Norway and Denmark). The region cemented its place as the hottest M&A market outside the U.S. with US$15 billion of value traded, and 15 FIDs kept the sector moving. An exploration renaissance saw 1 bn boe discovered – the highest since 2011. But there were some high profile disappointments. Four billion barrels of start-ups helped keep production relatively flat and will contribute to an increase in 2020. The corporate landscape continued its evolution. The Majors returned to selling mode and outside of a few core areas, are likely to divest more. Private equity-backed companies remained a force, but are also starting to think about an exit. It ended what has been a choppy decade for the E&P sector. Numerous issues were exacerbated by the oil price crash in 2014. But improved cost control and a new wave of players have helped steady the ship and sparked a middle aged revival.