Dutch financial services firm ABN Amro has suggested that Shell and BP should seriously consider merging their operations, BigOil.net reports.

According to ABN Amro, in the current world energy climate, half Dutch oil producer Shell should consider combining its operations with another major western European player, such as BP or Total.

The Netherlands-headquartered bank believes that the establishment of a mega-sized oil company is what Europe’s oil firms need to ensure the necessary economies of scale and market clout to stay on top.

According to BigOil.net, ABN Amro forecasts that the merger of Shell and BP would add GBP10 per share to the value of Shell’s stock, while also creating an oil goliath with a market value in excess of GBP200 billion.