Five key questions companies and investors must ask
The oil and gas sector is faced with intense pressure on cash flow due to low returns on capital. While there is a reset of the cost base, the industry also needs to renew its resource and production portfolios for long-term sustainability. M&A is an option that addresses some of the challenges facing the sector — providing buyers with the opportunity to upgrade portfolios, propel operational improvements, acquire strategic capability and renew assets for the longer term. We are seeing an increasing sentiment for a surge in oil and gas deal activity in 2016.
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