New Delhi, July 28 -- Oil and gas companies are increasingly turning to mergers and acquisitions (M&A) as a strategic tool to improve operational efficiency, enhance profitability and create long-term value amid volatile market conditions, according to a report by global consulting firm McKinsey & Company.

"O&G is entering a period of elevated M&A activity--and particularly of mergers and combinations--as companies respond to price volatility, seek greater scale, and look for new ways to create value," the report said.

The report said the industry is witnessing a fresh wave of dealmaking, with companies pursuing mergers of equals and business combinations to build larger, more efficient operating platforms rather than focusing solely on...