New oil exploration licences in Angola have put Exxon and Total on top of worldwide acquisitions in 2020, according to Rystad Energy.
According to the consultancy, acquisitions of new onshore and offshore exploration licences for the top five Western energy giants dropped to the lowest in at least five years, due to the pandemic, while companies including Exxon Mobil, Royal Dutch Shell and Total also reduced spending.
Exxon, the largest U.S. energy company, acquired the largest acreage in 2020 in the group, with 63% in three blocks in Angola, according to the report.
Total was second with two large blocks acquired in Angola and Oman.
Acquiring exploration acreage means companies can search for oil and gas. If new resources are discovered in sufficient volumes, the companies need to decide whether to develop them, a costly process that can take years.
As a result, the drop in exploration activity could lead to a supply gap in the second half of the decade, analysts said.
Of the five companies, BP saw by far the largest drop in new acreage acquisition in 2020. Bernard Looney, who became BP’s CEO in February, outlined a strategy to reduce oil output by 40% or 1 million barrels per day by 2030. BP has rapidly scaled back its exploration team in recent months.
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