The dive in the oil price to near-six-year lows has set the scene for a wave of mergers in the sector, but bankers say the risk that prices will fall further will likely delay activity until later in the year. The collapse in the stock prices across the oil and gas sector has already prompted some players to run the ruler over smaller rivals, although deals will be difficult to reach, sources said.

“Everyone is having a good look but it’s not easy," one oil M&A banker said. “There’s still a long way to go before you can get a willing seller."