BAKU, Azerbaijan, February 29. Oil and gas upstream giants are projected to have an average combined spending of $7 billion annually in exploration projects from 2020 to 2024, Trend reports.
According to the research made by Rystad Energy, an independent energy research and business intelligence company from Norway, those companies will include ExxonMobil, Shell, Chevron, bp, TotalEnergies, and Eni.
However, this is marking a notable decrease from the previous four-year period, during which the average total spending amounted to $10 billion.
Despite tightened budgets, optimism is on the rise, especially in frontier drilling, Rystad Energy noted. Deepwater projects in the Atlantic Margin, Eastern Mediterranean, and Asia are anticipated to drive a productive year. The previous year witnessed a significant surge in awarded acreage to major players, totaling 112,000 square kilometers - an increase of 20 percent from the year before. Notably, all awarded blocks were offshore, with 39 percent in the shelf segment, 28 percent in deepwater, and the remaining 33 percent in ultra-deepwater.
The research added that Shell continues to play a crucial role in deepwater exploration and production, with major projects in the pipeline for this year, especially in Southeast Asia, Africa, and the Americas.
Meanwhile, bp, too, has extensive deepwater exploration plans in Africa and the Americas. Chevron and Shell are working together on initiatives to conduct drilling activities off the coast of Suriname in Block 42, housing the Walker carbonate prospect. A discovery in this block could catalyze additional exploration endeavors in Suriname, contributing to the growing basin of hydrocarbon reserves in South America.