FRANCE'S UPSTREAM SECTOR SLIDES; NO RECOVERY SEEN

France's exploratory drilling fell to its lowest level in 30 years in 1993, dropping 22% from the year before to only seven wells.

Seismic work in France in 1993 reached its lowest level since 1950. Exploration spending fell 17% from the prior year to 542 million francs in 1993 and is projected to fall further to 537 million francs this year.

Development drilling was halved to nine wells drilled in 1993. Production spending dropped 22% to 680 million francs in 1993 and is projected to fall further to 640 million francs this year.

France's oil production continued to slide in 1993, dropping 4.4% to 54,800 b/d. Of that total, Paris basin production fell 6.1% to 34,800 b/d, and the Aquitaine basin registered a 1.3% drop to 19,800 b/d. Oil production is expected to inch up to 56,600 b/d in 1994 as a result of added output from Esso Rep's Arbousiers field development in the Aquitaine basin.

Natural gas production increased by 1.8% to 465 MMcfd in 1993 because of strong performances by Ste. Elf Nationale Aquitaine's deep production in Lacq and Lanot fields and addition of coal seam gas Gazonor is developing in France's northern coal basins. French gas production is expected to dip to about 451 MMcfd in 1994.

In an effort to bolster France's upstream sector, the government scrapped the "exceptional tax" on hydrocarbon production for fields developed the next 2 years but maintained the tax on existing production. Operators contend the move is not enough to boost exploration, in view of current low oil prices.

Copyright 1994 Oil & Gas Journal. All Rights Reserved.