‘Deepwater acreage will continue to attract significant company interest through 2020’

4619968508 915a8ec8e8 cA significant portion of the acreage available in Q1 2020 is located in either deep or ultra-deepwater, up from the previous quarter, according to data and analytics company GlobalData

The company’s report: ‘Q1 2020 Global Bid Round Outlook - Increase in Deepwater Acreage Offered in Q1 2020’ reveals that in Q1 2020, approximately 60 per cent of the acreage available in licensing rounds either open or scheduled to close in the quarter is located in deep or ultra-deepwater.

Toya Latham, upstream oil and gas analyst at GlobalData, commented, “With the increase in deepwater exploration drilling in 2019 and the largest discoveries of last year also mostly located in deepwater settings, it is likely that deepwater acreage offered by governments will continue to attract significant company interest through 2020.”

In Q1 2020, 16 licensing rounds are open with seven scheduled to close in the quarter. The US is offering the largest volume of acreage in Lease Sale 254, which will be held in March 2020. Senegal has also officially launched its 2020 licensing round offering 12 offshore blocks, which will close in July 2020.

“Following the major exploration successes in the area over the past few years, Senegal’s 2020 licensing round could generate significant interest; the round will also be the first to test the country’s recently updated fiscal framework, which increases the fiscal burden for new investments,” Latham continued.

Looking ahead into 2020, Africa, Asia, and South America are expected to host a major portion of the potential upcoming licensing round activity including Angola, Nigeria, Thailand, and Brazil.

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