Rystad Energy: ExxonMobil leads pack of top explorers in 2018

Driven by its large investment in Guyana, ExxonMobil Corp. is leader of the pack among the top oil and gas explorers of 2018, according to Rystad Energy’s annual exploration review.

“ExxonMobil was exceptional, both in terms of discovered volumes and value creation from exploration,” said Espen Erlingsen, Rystad Energy head of upstream research.

“Last year, Rystad Energy witnessed the revival of offshore exploration activity. Improved market conditions and operational efficiencies, along with sustained cost deflation, allowed many E&P players to move forward with promising high impact exploration campaigns in 2018.” Erlingsen added.

To measure performance, Rystad Energy looked at the number of exploration wells, net discovered resources, and the value creation from wildcat exploration during 2018.

In 2018, US supermajor ExxonMobil drilled 2.7 net wildcat wells in Guyana and discovered close to 2 billion bbl in additional gross resources on the Stabroek block, which includes the giant Liza discovery.

Hess Corp. and CNOOC weigh in at second and third places in terms of value creation in 2018. However, both are partners in ExxonMobil’s Stabroek block, and have therefore benefitted from the Guyana success as well.

Total SA ranks as the second-best oil major, having created about $2.2 billion in valuation from 2018 exploration. The company had particular success in the US Gulf of Mexico (Ballymore), and the UK.

Savannah Petroleum was the company with the highest value creation per barrel of oil equivalent last year thanks to its work in Africa. Rystad Energy estimates the resources discovered on Niger Block R3/R4 have a net present value of more than $10/boe.

Russian independent Novatek, with 935 million boe, had the greatest amount of discovered resources in 2018. Novatek’s volumes stem from the North Obskoye discovery in the Kara Sea.

“Top E&P companies registered many exploration successes in 2018, as majors and minnows alike made significant discoveries, but ExxonMobil was exceptional,” Erlingsen added.