Brazil hits top of E&P prospect ranks

Brazil is the most popular country this year for new exploration, development, and production ventures, although the Middle East has become the most sought-after region.

These are the findings of Robertson Research International Ltd., Llandudno, U.K., after its latest annual international new ventures survey, in which the firm polls E&P companies based outside North America.

In the poll, now in its 13th year, Robertson asked companies about their levels of interest in E&P ventures in 146 countries. This year, 94 companies responded, which among them are expected to account for 70% of global oil company E&P spending this year.

The rankings

This year's top 10 countries were listed, in order, as: Brazil; Australia; Iran and U.K. (tied for third); Indonesia; Libya; Algeria and Iraq (tied for sixth); Angola; Argentina; Egypt and Gabon (tied for ninth); and Venezuela.

Robertson said Brazil has risen spectacularly up the ranking, from 43rd in 1994 to its current top spot. Yet the Middle East has become the most favored region, overtaking both the Far East/Australasia and Latin America/Caribbean regions.

'The low finding and lifting costs in the Middle East," said Robertson, "coupled with anticipation of increased scope for international participation, has raised the profile of several of the constituent countries, notably Iran (up 12 places to third), Saudi Arabia (up 25 places), and Kuwait (up 13 places)."

Oil price slide effect

The oil price slide in 1998 was blamed for a reversal of the more expansive new ventures trend of recent years.

Cost-cutting rose sharply, according to the survey, with 74% of companies indicating cuts had occurred in 1998. At the same time, the number of companies actively seeking new ventures was reported down to 30% in 1999 from 52% in 1998, the survey found.

"An average oil price of $13.76/bbl has been used for 1999 budgeting purposes," said Robertson, "down from $18.60/bbl a year ago. Sixty-nine per- cent of respondents predict a flat oil price for 1999, and 22% expect it to rise.

"Gas and deepwater exploration appear to have survived the squeeze over the last year, but heavy oil projects are much less popular."