Guyana has been named as one of several countries in South America, the Middle East and Africa targeted for significant growth in offshore oil and gas exploration spending this year, according to the French oilfield services company Schlumberger Limited (SLB), believed to be both the world’s largest offshore drilling company and the world’s largest offshore drilling contractor by revenue.
This, as offshore oil and gas exploration is reportedly set to increase by more than 20% globally this year, which growth, SLB is reported to have said will continue into next year.
Guyana apart, SLB is reportedly also asserting that the big spending on oil and gas recovery, going forward, will also be linked to large development projects in Brazil, and the Middle East and will also be associated with production capacity expansions in Africa as well as a revisiting of exploration and appraisal in newer offshore African provinces of Namibia, Tanzania, Colombia, India and the Miditeranian.
SLB chief Executive Officer Olivier Le Peuch is quoted as saying that at the recent JP Morgan Energy Power and Renewable Conference that “Offshore is experiencing a renaissance, with significant breadth and anticipated durability.” The world’s largest oil services and equipment provider is projecting “a long tail of activity” with 65 lease rounds concluding globally this year, in addition to several countries awarding leases through open-door policies. Le Peuch is projecting that the anticipated levels of offshore exploration activity anticipated this year will mean that the company’s offshore exploration spending to increase by “more than 20%.
Between 2022 and 2025, the company is anticipating having to make in excess of US$500 million in investment decisions a 90% increase over the 2016-2019 period.
This growth will be driven largely by what the company says will be “large development projects in Guyana and other countries as well as a return of exploration and appraisal in mostly in Africa, India and the Mediterranean.
SLB reportedly gets around 50% of its international revenue from offshore and has reportedly said that the resurgence of offshore activity will help its well construction, reservoir performance and production systems.
International business accounted for about 76% of SLB’s revenue at about $6 billion in the first quarter.
