Impact of Mauritania Discoveries on West Africa Offshore Exploration

Transcription

1 Impact of Mauritania Discoveries on West Africa Offshore Exploration Peter Grant Woodside Energy Ltd. NOT AN OFFICIAL UNCTAD RECORD 8 th Africa Oil and Gas, Trade and Finance Conference 28 April 2004 Marrakech

2 Impact of Mauritania Discoveries on West Africa Offshore Exploration Historical Perspective Economic impact Technology impact Issues

3 Historical Perspective The Players 1970s: the turn of the majors, Shell, Amoco, Exxon et al 1980s: the doldrums Mid 1990s: the entrance of the entrepreneurs Late 1990s: the turn of the mid caps and the impact of new technology 2001: the year of success 2003: the return of the bigger players

4 1978 "The Majors" Morocco Canary Islands Algeria Atlantic Ocean Western Sahara Mauritania Mali Cape Verde Islands Senegal Exploration Seismic only kilometres Gambia Bissau Sierra Leone Liberia

5 1988 "The Doldrums" Morocco Canary Islands Algeria Atlantic Ocean Western Sahara Mauritania Mali Cape Verde Islands Senegal Exploration Seismic only kilometres Gambia Bissau Sierra Leone Liberia

6 1998 "The Entrepreneurs" Morocco Canary Islands Algeria Atlantic Ocean Western Sahara Mauritania Mali Cape Verde Islands Senegal Exploration Seismic only kilometres Gambia Bissau Sierra Leone Liberia

7 2000 "The Mid Caps" Morocco Canary Islands Algeria Atlantic Ocean Western Sahara Mauritania Mali Cape Verde Islands Senegal Exploration Seismic only kilometres Gambia Bissau Sierra Leone Liberia

8 2004 "Return of the Majors" Morocco Canary Islands Algeria Atlantic Ocean Western Sahara Mauritania Mali Cape Verde Islands Senegal Exploration Seismic only kilometres Gambia Bissau Sierra Leone Liberia

9 Awarded Offshore Contracts Sierra Leone 80 Senegal Canarias Mauritania / Bissau / Senegal JEZ 60 / Bissau Gambia Morocco

10 Offshore Seismic Surveys (by data collected) Line km Sq. km D 3D

11 Offshore Surveys (by number acquired) Projected? D 2D

12 Offshore Wells Projected 20? Sierra Leone Senegal Morocco Mauritania 8 / Bissau Gambia

13 Offshore Discoveries by Country 6 5 Mauritania / Bissau / Senegal JEZ s 1970s 1980s 1990s 2000s

14 Post Success Economic impact Investment Operational bases: UK and Nigeria, where next? Work force competency: how do we ensure supply? Technology impact High technology seismic State of the art drilling Contractors / training

15 Impact of Mauritania Discoveries on West Africa Offshore Exploration The changing landscape The continuum of deals makes for healthy technical challenge: - only those wanting to play the game remain - the players are varied in both size and origin

16 Impact of Mauritania Discoveries on West Africa Offshore Exploration Morocco: Enterprise became Shell Vanco brought in ENI Mauritania: Elixir became Roc Oil Fusion sold to Premier Fusion taken over by Stirling British Borneo bought by ENI ENI exit Hardman sold a portion to British Gas Energy Africa and Petronas farm in -Bissau: Premier brought in Occidental -Bissau Senegal JEZ: Fusion farmin ENI Across the margin: Fusion brought in Amerada Hess

17 Impact of Mauritania Discoveries on West Africa Offshore Exploration Issues Local content: How can we maximise this in areas with little previous experience? Legislation: How can we ensure that legislation is current? How do governments experiencing renewed E&P activity provide appropriate due diligence? How can we together address new and global environmental issues as a region? Expectation Management: Timing of exploration success to production to profit.

18 Impact of Mauritania Discoveries on West Africa Offshore Exploration Issues Revenue: Government planning production to depletion. Keeping the attraction: Stable PSC terms. Transparency: A good start so far.