Despite the backdrop of declining exploration levels globally, drilling activity in Norway has been surprisingly resilient. A new report from Richmond Energy Partners, part of the ESIA Group that includes Hannon Westwood, examines exploration performance over the period following the 2 billion barrel Johan Sverdrup field discovery in 2010/11, identifying the companies who are the “winners and losers”, and examining the drivers for exploration performance.
With the acquisition of Hannon Westwood by Energy Ventures early in 2015 and the subsequent acquisitions of Novas Consulting, Richmond Energy Partners and Douglas Westwood during the course of the year, the combined group now has a much greater research base for critical analysis to support exploration de-risking in the current economic climate.
Dr Keith Myers, Managing Director of Richmond Energy Partners, comments, “There is a wide disparity in exploration performance between companies operating in Norway in this period. This report examines the correlations that underlie the exploration performance using a number of different metrics and explores the different strategies that have led to success or failure in a region that continues to attract significant exploration capital.”
Norway remains a mainstay for explorers in the small to mid-cap E&P sector, with activity levels proving somewhat resilient to the fall in oil prices. However, in the light of Norway’s declining exploration performance over recent years, this is an opportune time for companies – and arguably Norwegian tax payers – to reflect on the results of drilling programmes to date and assess how performance might be improved in the future.