10 Aug 2021
Posted in Oil & Gas
Offshore acreage dominates global licensing rounds that are due to close in H2 2021, says GlobalData
Over 35% of the acreage available in licensing rounds that are either open or scheduled to close in H2 2021 are located in shallow water, while ultra-deep water and deepwater acreage accounts for 24% and 19%, respectively, according to GlobalData, a leading data and analytics company.
The company’s report, ‘H2 2021 Global Bid Round Outlook – Licensing Rounds in 2021 Remain Low Due to the Impact of COVID-19, Although Expectations have Grown for the Coming Years’, reveals that in H2 2021, 16 licensing rounds that are currently open are expected to close by the end of the year. Asia is hosting the largest number of licensing rounds in H2 2021 with six, followed by South America with three.
Among the rounds which are scheduled to close in H2 2021, Malaysia is offering the largest volume of acreage in the PETRONAS Licensing Round 2021 (MBR 2021), which will be held in August 2021. Malaysia is followed by the 2021 Offshore Acreage Release Round in Australia, and the International Bid Round 2021 in Egypt.
Nikolas Pachipis, Oil & Gas Analyst at GlobalData, comments: “Ongoing financial discipline and cuts in the exploration budget by many upstream companies could push exploration activities toward mature basins and areas with existing infrastructure. Companies with high capital availability in the current environment may be in an advantageous position to participate in licensing rounds and capitalize on reduced service costs and competition.”
Among countries, Australia, Brazil, Canada, India, and Indonesia are expected to host a major portion of the licensing round activity that is scheduled to close in H2 2021.