Analysis: There is no doubt that the higher oil price has had a positive impact on the earnings of oil producers. Tullow itself cited rising prices and increasing production when it reported first-half profits of more than £95 million (€142 million) this month.

However, these increases have also had a negative effect on sector consolidation, with higher earnings making companies more expensive for potential acquirers.

While Tullow's decision to acquire Hardman may not be a surprise in itself, the speed of the deal was.

"It's probably fair to say there was an element of opportunism in this acquisition," said one analyst, adding that the recent declines in the oil price may now lead to further consolidation in the sector.

Moreover, Hardman has suffered more than others. The recent 24 per cent retreat in oil prices to a six-month low of $60 (€47) - the sharpest decline in 15 years - has only added to earlier woes relating to lower-than-expected production figures at one of its Mauritanian fields.

As far as Tullow is concerned, the acquisition can only be seen as positive. It has recently reported several developments at its African ventures and the acquisition will only increase opportunities in this area, in particular giving it control over what was previously a joint venture in Uganda. Total group production will now be 87,000 barrels a day, compared to a forecast of 80,000 and the number of exploration wells to be drilled in the next 18 months has increased by 16.

According to Job Langbroek, an analyst at Davy, the deal puts Tullow in a strong position. "The new projects are a good fit with the cash flow profile of Tullow in 2007 and onwards," he said.

"Following the deal Tullow will have larger reserves, an increased production profile, a pipeline of new projects and an even stronger African footprint."