But in the current climate a firm rig contract is no guarantee of a well being drilled, Gruschwitz pointed out. For example, CNOOC’s planned Pelles A-71 well in the Flemish Pass basin offshore Newfoundland has been postponed due to COVID-19 concerns, as has Aker BP’s wildcat on the Stangnestind prospect in the Norwegian Barents Sea.
Contracts are undergoing close scrutiny with some operators triggering force majeure clauses.
North America (including Mexico) will likely to take the biggest hit, although this region still looks set to for the largest number of wells.
Elsewhere, few high-impact wells look likely in the eastern Mediterranean this year, while only three to five wells in this category may go ahead in Sub-Saharan Africa.
Drilling plans in the central North Sea, offshore Guyana and Suriname and the shallow water Bay of Campeche area in Mexico will probably be less affected, although the coronavirus may still restrict operations even where companies are keenest to drill.
However, the fact that wells are going ahead shows that exploration may be down in 2020 but is not out.
04/21/2020
