SOURCE: oil price
As oil majors return to offshore exploration, the deep waters of West Africa have become a key drilling target for some of the largest international companies.
Ivory Coast and Namibia have been the hottest exploration areas in recent years, producing huge oil and gas discoveries. While Namibia has yet to launch its own crude oil production, Ivory Coast has been producing crude oil for years and is projected to triple its output by 2027 thanks to recent oil and gas discoveries in its waters. Ivory Coast hopes to increase its oil production to 200,000 barrels per day (bpd) by 2027, up from 60,000 bpd currently, the West African country's president Alassane Ouattara said this week. The country, also known as Ivory Coast, hopes to attract
15 billion dollars in investments in its oil and gas sector and become a regional oil and gas hub. TotalEnergies made a major light oil discovery with associated gas at the Venus prospect in the Orange Basin in early 2022. Venus in Namibia could be a "giant oil and gas discovery," the French supermajor said in an investor presentation in September 2022. Over the past two years, Shell has made four oil and gas discoveries in the Orange Basin, off the coast of Namibia. In May this year, a BP and Eni joint venture, Azule Energy, announced a deal to acquire 42.5% of an offshore block in Namibia, which Azule Energy CEO Adriano Mongini described as a "region of highly prospective hydrocarbons".
Although development designs, timing and production levels are still uncertain, Wood Mackenzie estimates that Namibia's oil economy could be strong, with a positive net present value (NPV) even at oil prices as low as 40 dollars per barrel. TotalEnergies and QatarEnergy are also expanding their efforts to explore for oil and gas in the Orange Basin by acquiring a nearby license in the basin in South African waters. Ivory Coast, Namibia and South Africa have become the new targets of large companies for offshore exploration and production.
Comments