Oil majors to reduce exploration investment in Nigeria, others in 2018

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The Nigerian National Petroleum Corporation (NNPC), may continue to spearhead exploration activities in frontier basins, as oil majors are set to remain sluggish in spending on searching for new discoveries, The Guardian reports.

The likes of ExxonMobil, Royal Dutch Shell, Total, and other majors are to cut spending on oil and gas exploration for a fifth year in a row in 2018, U.K-based research institute and consultancy, Wood Mackenzie (WoodMac) has said. Although the price of oil is starting on a good note this year, WoodMac however said that the oil majors would retain capital discipline, and rather spend on already discovered resources.

According to the research body, investment in exploration across the world, necessary for offsetting decline may reach $37billion in 2018. This would amount to a decline of seven per cent from a year earlier, and over 60 per cent below the 2014 peak. In the upstream sector, majors would drop investment by about four percent in 2018, the research disclosed. It said: “This could be the new normal, with the days of one dollar in six or seven going to exploration forever in the past.”