New round of oil M&As on horizon

With world oil prices appearing to have stabilized, analysts said they believe there could be a new round of merger-and-acquisition activities in the sector - as Chinese oil companies took advantage of relatively low asset prices to enter the arena and become active players.

Oil prices have firmed since the Organization of Petroleum Exporting Countries (OPEC) agreed to production cuts last year, but still remain well off peak prices of a few years ago topping $100 a barrel.

Gordon Kwan, head of Asian oil and gas research at Nomura Holdings Inc, said that when oil prices were either declining or fluctuating, it was difficult for buyers and sellers to agree on asset valuations.