The report, From Survival to Growth in a New Era, surveyed the views of CEOs, CFOs and general counsels of the world's largest oil and gas companies with a combined turnover of US$5.3 trillion.

Eighty-three per cent of respondents expect a 'substantial' increase in M&A in the next three to five years, including an average expected increase of 50 per cent by volume this year compared with 2015, as companies restructure asset portfolios, seek new growth options and act opportunistically.

Asia-Pacific a hot spot for investment

Asia-Pacific is highlighted as the most attractive region for investment, with 31 per cent of respondents expecting their next investment to be in the region compared to 22 per cent in Africa, 19 per cent in Europe and 15 per cent in the Americas.

More than one third of companies also plan to issue new equity to support growth in the next five years, with this option most popular for companies in the Asia Pacific (37 per cent) and Europe (31 per cent).

Developments in Papua New Guinea

Partner Daniel Reinbott said that the insights contained in the report were timely given the recent US$2.2 billion offer for InterOil by Oil Search to optimise the future development of one of the world's largest underdeveloped gas fields in Papua New Guinea. ‘Asia-Pacific is recognised as being a hot spot for new investment in our report, so this region is highly likely to continue to see more corporate activity,’ he commented.