The Middle East emerges as the most popular region for new oil ventures in 2002, even though some countries in the region present restricted opportunities, for example Saudi Arabia, while others operate under sanctions, as Iran or Iraq, making it difficult to invest in the big reserves at present.
According to the British Robertson's International New Ventures Survey, which polls oils companies involved in exploration and production (E&P) ventures outside North America, Libya tops the rankings for the third successive year as the country most favored by oil companies for new ventures in 2002.
This, despite the slow pace of new contract negotiation and award and despite the continuance of US sanctions, Libya's hydrocarbon potential appears to be a great attraction. In 2002, the North African country came ahead of the United Kingdom and Australia. The survey then lists Algeria, Egypt, Indonesia, Brazil, Mexico, Angola, Qatar and closing the top ten is Trinidad & Tobago.
After three years of falls down the rankings the United Kingdom bounces back to second place. Mexico, Qatar and Trinidad enter the top ten for the first time in the survey's 15-year history. Despite concerns about the proposed Multiple Service Contract formula, announced by PEMEX, the prospect of upstream involvement in the Mexican petroleum business for the first time in over 50 years, is obviously exciting many companies.
Some 57 percent of survey participants say they will increase total worldwide E&P spending in 2002, although there is an atmosphere of caution and uncertainty. An average annual oil price of $19.60 has been used for 2002 budgeting purposes. 87 percent of companies say they expect the current phase of M&A to continue in 2002.
The research firm asks oil companies to rate, in a confidential questionnaire, their level of interest in new ventures in 146 countries. Country rankings are prepared and analyzed to determine the factors, which influence movements up or down the rankings.
Robertson, a British geoscience services and consulting company, now part of the Fugro group, carries out projects for new ventures, exploration, appraisal, development and production throughout the world. It conducts its International New Ventures Survey as a complimentary service for its numerous oil company clients. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
