'APAC, West Africa will show long-term growth in oil exploration'

Asia Pacific and West Africa will exhibit long-term growth in exploration activity in oil and gas sector, a report from Nomura has said.

"Regions we are confident will demonstrate secular growth in exploration activity and be supportive to seismic demand are Asia Pacific (Indonesia, Malaysia, Australia and India) and West Africa (Nigeria, Angola, Ghana)," the financial services firm said in its report on Global Exploration Outlook.

[caption id="attachment_406728" align="alignleft" width="380"] However, the report forecasts a decline in capex in Russia, North Africa. Reuters[/caption]

According to the report, South East Asia (primarily India, China and Australia) and West Africa, Middle East Gulf (excluding North Africa), Gulf of Mexico, South America (predominantly Brazil), North Sea (Norway and UK) will show growth in the near to medium term in capital expenditure for oil and gas exploration.

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"We forecast 4 percent growth (CAGR) in global oil and gas investment across 2011-14 (assuming a long-run oil price of USD 95 per barrel) and show that exploration spend is accelerating and is expected to represent 35 percent of global capex by 2015 (from 27 percent in 2009)," Nomura said.

However, the report forecasts a decline in capex in Russia, North Africa, Central America, and Canada in the near to medium term. The report said Iraq, Ecuador, Poland, Australia, and to lesser extent Oman and India will demonstrate strong growth in drilling activity.

In its projection of seismic outlook, Nomura said: "we forecast a 12 per cent growth in seismic workloads globally in 2013 versus 2012, with notable performance expected in Gulf of Mexico, Asia Pacific (Indian Ocean and Australia) and to a lesser degree South America".

"Against the backdrop of exploration demand, regions that should demonstrate the best growth and contribute materially to demand for seismic surveys include the Indian Ocean, Latin America, Australia, New Zealand and West Africa," Nomura said.

PTI