The unsolicited approach from Italian giant ENI for Enterprise Oil is an indication that the British oil and gas sector may be in for another round of consolidation.

One must wonder if Tullow Oil, long touted as a potential takeover target, will come under the microscope. With some extensive North Sea revenue after its big acquisition of some of BP's North Sea interests last year and a plethora of exploration and production interests in Europe, Africa and Asia, Tullow, now registered as a British company, is seen by many as an attractive target in a consolidating sector. Tullow shareholders, which include Enterprise, did well last year with the shares up 26 per cent.

If an approach does come, it will undoubtedly be at a hefty premium to Tullow's current €475 million (£374 million) value in the market and would be the biggest deal involving an Irish company since Statoil's takeover of Aran Energy some years ago.