By OGJ Editors
HOUSTON, Mar. 27 -- The Middle East and Libya rank as the region and country most favored by international oil companies for new exploration and production investment in 2002, according to a recent survey by UK consultants Robertson Research International. The results mark the third successive year that Libya has been the most preferred country.
"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," Robertson said.
Nor did restricted opportunities in Saudi Arabia or sanctions in Iran and Iraq that make current investment difficult deter operators from favoring the Middle East region.
The UK bounced back to second after 3 years of falling in the rankings, and Mexico, Qatar, and Trinidad and Tobago entered the top 10 for the first time in the survey's 15-year history.
"Despite concerns about the proposed 'Multiple Service Contract' formula announced by [Petroleos Mexicanos], the prospect of upstream involvement in the Mexican petroleum business for the first time in over 50 years is obviously exciting many companies," Robertson postulated.
Of the survey participants, 57% indicated they would increase total worldwide E&P spending in 2002, "although there is an atmosphere of caution and uncertainty," Robertson said.
The survey also revealed that an average annual oil price of $19.60/bbl was used for 2002 budgeting purposes, and 87% of the responding companies expect merger and acquisition activity to continue throughout the year.
Robertson's International New Venture Survey polls oil companies involved in E&P ventures outside North America on their interest in new ventures in 146 countries. Country rankings are then analyzed to determine the factors influencing movements up or down in the annual rankings.
