Oil price volatility report

Divestment & acquisition of assets

What form will M&A activity take? What assets will attract most attention?

A third of companies (31%) wish to shed underperforming assets over the next 12 months 32%

45% will be looking for strategic business growth or acquisition activities

88% expect upstream operations to see the most M&A activity

36% Multiple specific assets or parts of companies

17% Individual project or interest in a project

Company-wide activities or entire asset portfolios

Insolvencies & disputes on the horizon? – – Concerns over cancelled or broken agreements loom large, with 86% of respondents expecting this to be the main cause of claims and disputes over the next year – – JV partners, contractors or suppliers becoming insolvent or unable to fulfil their contractual obligations is also a key concern (81%), as are payment issues (67%)

86% Cancellingor breakingof agreements

81% Companies or suppliers becoming insolvent and unable to perform obligations

67% Payment issues

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