As Petrobras shrinks its global E&P activities with farm-outs and asset sales, other oil majors such as Total, Statoil and BP have extended their presence in the country. But smaller operators are also looking for E&P investment opportunities in Latin America’s largest oil producing country.
Oil majors are targeting new oilfields that can be profitable even if oil prices fall to about $30 per barrel, using a third year of rising demand to reshape portfolios amid uncertainty over the industry’s future.
Rystad Energy has identified 36 potential high-impact wells for 2024, a significant increase from 27 in 2023.
Africa and Latin America are expected to account for nearly 64% of these wells, with a focus on frontier and emerging basins.
Despite 2023’s low success rate and rising drilling costs, the industry remains optimistic, with major oil companies and national oil companies planning significant drilling activities.
Equinor, Exxon Mobil, Shell, and other oil majors have sold or are planning to sell their Nigerian assets to local companies.
The divestment trend, which has accelerated in recent years, is attributed to concerns over security in the Niger Delta and a global push towards cleaner energy.
Critics argue that these divestments may not lead to better environmental practices, as local companies taking over might have less stringent emissions controls.