A surge in offshore drilling is boosting the amount of planned expenditure in booming regions such as Africa and the Middle East, according to a new report.
According to GBI Research’s latest oil and gas report, offshore drilling expenditure across the region is forecast to climb steadily from US $13.56 Bn in 2012 to $17.03 Bn in 2016, in all water depths. Cumulatively, the total expected spend for this 5-year period is $77.3 Bn, a rise of approximately 22% compared to the 2007-2011 total of $63.5 Bn.
Drilling outlay is expected to grow across all major nations in the region, with those in West Africa leading in terms of exploration activity, driven largely by its deepwater activity. Escalating drilling programs in countries relatively new to the offshore business, such as Sierra Leone and Liberia, may prove to be future competition for the more established nations of West Africa, said GBI.
Ghana is emerging as one of the most prominent countries in West Africa for oil and gas exploration, with 16 offshore discoveries made between 2008 and 2012 – second only to Angola, where 22 discoveries were made during the same period.
In terms of drilling spend, Angola is expected to remain the biggest in the region by some margin over the next few years. GBI Research expects drilling expenditure in the country to continue climbing in the near future, hitting $6.67 Bn in 2016.
Nigeria and Egypt are forecast to be second and third, with totals of $2.26 Bn and $1.52 Bn, respectively.
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