LONDON, April 16: The value of mergers and acquisitions in the energy sector in 2007 approached the “mega merger” high levels of nearly a decade ago, a report said on Monday.

The value of deals involving energy companies jumped 16 per cent last year compared with 2005 to $291 billion, said PricewaterhouseCoopers in its first O&G Deals’ report.

“Record cash flows have pushed deal activity in the oil and gas industry to levels rivalling the mega merger highs of 1998,” it said.

Last year, the average deal value in the sector rose 18 per cent compared with 2005, PwC said. In 2006, the total value of deals was worth about 215 billion euros.

The value of tie-ups surged because of a rise of national oil companies (NOCs) from Russia, China and India, a boom in oil services activity and the desire of private equity firms to have a grip on the energy sector, it

added.—AFP