Oil and gas mergers and acquisitions involving a UK target or buyer have reached $19.6 billion year-to-date, above the $16.5 billion recorded for all of 2025, making 2026 the busiest year since at least 2022. Eleven analysts and bankers told Reuters that ageing fields, high operating costs and a 78% headline tax rate for UK upstream activities are strengthening the case for scale and further consolidation. BP’s planned sale of its North Sea fields could raise more than $2 billion, analysts estimate, with the next bidding round due in December. Potential buyers include EnQuest, NEO NEXT+ and Ithaca, although the pool of credible buyers with sufficient balance sheets, tax capacity and decommissioning expertise remains limited. The outlook is sensitive to energy prices and government policy, including the United Kingdom’s net-zero commitment, approval of the Jackdaw gas field and continued support for oil and gas in the energy mix. Recent transactions include offers for Capricorn Energy and Pharos Energy, a $601 million all-share merger between Gulf Keystone Petroleum and ShaMaran Petroleum, and Ithaca’s C$1.2 billion acquisition of three offshore assets from Suncor.