Does your jurisdiction have an established upstream oil and gas industry? What are the current production levels and what are the oil and gas reserve levels?
Oil & Gas
Brazil has an established upstream oil and gas industry, with approximately 120 companies holding a diversified portfolio of onshore and offshore exploration and producing assets. In August 2019, the Brazilian oil production reached an average of 2,989MMbbl/d, with offshore production representing 96.5% of the total output. Pre-Salt production represents 63.4% of total domestic hydrocarbon production, although this rate is expected to grow in the upcoming years.
Petróleo Brasileiro S.A. - Petrobras is by far the largest oil producer in Brazil. Its fields account for 43% of total oil & natural gas produced in the country, even though the production of other oil companies is growing fast as a result of the opening up of the upstream market.
According to the ANP's August 2019 monthly newsletter, gas production has reached an average of 133.3 MMm³/d, with offshore production representing 81.1% of the total output.
In 2018, Brazil booked estimated reserves of 13.4 billion barrels of oil and 0.38 trillion cubic meters of gas.
Both oil and natural gas are produced in Croatia, though not in significant amounts, and therefore the country is largely dependent on the import of these commodities.
The latest official data available from the Croatian Institute of Statistics is for the year 2017, and shows production levels of 753,000 tonnes of crude oil, 283,000 tonnes of LPG, and 1,484 106 m3 of natural gas. The Croatian Energy Regulatory Agency reports that 610,000 tonnes of crude oil were produced in Croatia in 2018. Crude oil is currently produced only onshore.
The Hydrocarbon Agency estimates gas reserves to be around 1,3 trillion cubic feet in the northern Adriatic region. IHS Markit reports a possibility of natural oil reserves amounting to around 65 MMboe, most of which are unexplored.
Greece's geographical location at the crossroads between the West and the East allows it to play a key role in Europe’s energy map. In recent years large quantities of gas have been discovered in the offshore zone of Cyprus. Following 2007, when the “Prinos Concession”, relating to the oil field located at the Northern Aegean, was taken over by Energean Oil and which is the only oil producing area at the moment, there have been major developments in recent years regarding the awarding of new concessions. This year alone the Greek Parliament ratified the lease agreements for the exploration and exploitation of hydrocarbon reserves of the offshore regions of «Southwest of Crete» and «West of Crete», for the Ionian Sea oil block and oil block 10, which is located offshore of West Peloponese. All these developments gave new impetus to Greece's oil and gas industry. Until today, Greek Government has concluded 13 leases agreements both onshore and offshore. All oil blocks are at the exploration stage with the exception of Energean’s Epsilon block, at the Northern Aegean.
There are various oil reserves in Italy however they are, in general, fragmentary and in most cases located at considerable depth. There are both onshore and offshore reserves, some already perfectly operational and others awaiting exploitation and still others already shut down because they have become exhausted.
Italy in the 49th place in the world in upstream which is a significant position considering the limited number of sites available.
Oil reserves in Italy are exploited by Eni S.p.a., the major multinational Italian oil & gas company, sometimes in joint ventures with foreign companies (Shell, Total, and others).
The most important reserves are to be found in Basilicata (in detail in Val D’Agri which has 70% of oil production in Italy), in Sicilia and also in Calabria. There are also, some wells in Molise, in Abruzzo and in Lazio.
Finally, there are some reserves in Northern Italy but to a lesser extent. Currently searches are being carried out to identify new oil reserves off Sardinia and in the area of the Islands of the National Park of the Tuscan Archipelago. The production of Italian crude oil is around 8 million tonnes per annum while the reserves available in Italy are around one billion barrels. They amount to 0,1% of world crude oil reserves.
As to natural gas, Italy extracts approximately 6,5 billion cubic metres of gas a year, approximately 10% of its internal requirements. There are approximately 20 billion square metres of natural gas reserves in Italy. It may be said that given its dependency on foreign imports Italy has set up strategic reserves for the storage of gas consisting not of storage tanks or artificial containers but old methane deposits located above all in Val Padana, now exhausted which are used as gas deposits .
A part of these deposits is intangible because it is to be used only in emergencies, such as a war or international crisis (the reserve can cover national requirements for approximately 3 months).
Yes, México has an established upstream oil and gas industry, mostly in the region known as Gulf of Mexico where the Mexican State-Owned Company known as PEMEX (“PEMEX”) and private companies carry out exploration and extraction activities, same that are supervised by the National Hydrocarbons Commission (“CNH”).
Mexican upstream oil and gas industry began approximately between the years 70's and 80's with the discovery of one of the most important oil fields in the world known as “Cantarell” located in the Gulf of Mexico in an area known as “Sonda de Campeche” 85 Km from a city known as Ciudad del Carmen, Campeche State.
As of July 2019:
- There are 7,726 wells operating in the Gulf of Mexico and 52 studies currently being developed as to verify if oil potential in different areas.
- 111 exploration and extraction of oil and gas contracts awarded by CNH to private companies.
- 413 allocations awarded by CNH to PEMEX to explore and exploit oil and gas fields.
In 2018 production of crude oil reached an average of 1,813 million of crude barrels per day (Source: Petróleos Mexicanos (PEMEX)). As of August 2019, the average production of crude oil has reached 1,672 million of crude barrels per day.
Regarding natural gas, in 2018 production reached an average of 4,847 million of cubic feet per day, while as of August 2019 the average has been of 4,838.
As of January 2019, the reserve levels of crude equivalent oil were of:
- 3P: 25,106.1 billion.
- 2P: 15,836.2 billion.
- 1P: 7,897.3 billion.
Prospective resources total an amount of 112,833.3 billion from which 52,629.1 billion correspond to conventional resources and 60,204.3 to non-conventional resources.
Moroccan upstream oil and gas industry is being developed and promoted by Moroccan authorities as Morocco is not yet a significant producer.
Total petroleum and other liquids production has never exceeded 5,000 barrels per day (b/d) and total petroleum and other liquids consumption stood at 286,000 b/d.
Moroccan's proven reserves are currently estimated at 60,000 tonnes of oil, 1,020 million cu. m. of natural gas and 160,000 tonnes of gas condensate.
In this context, the Moroccan Government has established a legislative and regulatory framework including a number of incentives to promote investment.
Foreign and national companies invested MAD 1.44 billion in oil and gas exploration in Morocco in 2018 over an area of 127,000 square kilometres and there is approximately thirteen partners currently carrying out exploration or exploitation activities in Morocco.
In 2018, 28 onshore exploration permits and 42 offshore permits have been awarded along with one reconnaissance license and 10 exploitation concessions.
Throughout the 20th century Mozambique has been targeted as a country rich in hydrocarbons resources but due to political and economic factors, only in the past 20 years, has that sector gain the deserved attention with international players settling in the country with the purpose of exploring the resources. According to the Mozambican National Petroleum Institute, Mozambique has proved natural gas reserves of over 100 trillion cubic feet, which sets it in the lead for one of the African countries with the largest proved natural gas reserves.
In the past eight years, besides the already well established onshore fields located in Pande and Temane in the province of Inhambane, south of Mozambique, which holds proven reserves of 2.6 trillion cubic feet (TCF) (operated by Sasol, a South African energy firm which, after processing of the gas in Temane in a central processing facility, exports natural gas via a 865 km pipeline that connects the Pande and Temane fields to South Africa), the Rovuma Basin area has been in the spotlight, close to the border of Tanzania, more specifically Areas 1 and 4, both offshore, due to the discovery of over 180 tcf of natural gas reserves .
The main players in Areas 1 and 4 of the Rovuma Basin include Total (which acquired the American company Anadarko), Exxon Mobil, ENI, Mitsui, Galp Energia, Kogas, Oil India, Barhat Petroleum, among others. The allure of such large reserves has caught the interest of these multinational oil and gas companies which have been approving the final investment decisions, summing up to billions of dollars in investment on the construction of a Liquified Natural Gas (LNG) and a Floating Liquified Natural Gas production facility (FLNG), to process the natural gas of the Rovuma Basin, with a capacity to produce up to 20 million tonnes per year starting from 2023 (current estimate).
Compared to the country’s natural gas sector, the oil sector in Mozambique is relatively incipient.
The oil and gas industry is very large and complex and is divided into various sectors. The upstream sector deals with the exploration and production of oil and gas. Some of the major activities covered in this sector include geological and geophysical surveys, acquiring leases and permission from landowners to drill, drilling for the oil and gas, storage, etc. As such, the upstream sector is risky, complex and heavily regulated by the government.
The Nigerian economy is highly dependent on the production and exportation of its oil and gas resources. According to the Organisation of the Petroleum Exporting Countries (OPEC), by the end of 2018, Nigeria produced 1,602,000 barrel per day of oil and 44,251 million cubic meters of gas. The data also states that Nigeria’s oil and gas reserves in the same period was at 36,972 million barrels and 5,675 billion cubic meters respectively.
There are currently 9 prospecting and exploration and 18 production licences for oil and gas valid in Bulgaria. Out of these, two are large deep offshore exploration blocks operated by the oil and gas majors Total and Shell.
Latest available date shows annual natural gas production of 0,22 bcm and consumption of 3,073 bcm in 2018. The production of oil is insignificant. There is no official publication on established reserves.
Yes. According to the BP Statistical Review of World Energy 2019 (“2019 BP Report”), as of the end of 2018, Indonesia’s proven natural gas reserves amounted to 97.5trillion cubic feet (“Tcf”) and its proven oil reserves to 3.2 billion barrels, putting Indonesia in the top 20 of the world’s oil producers. Oil production reaches 808,000 barrels per day. Gas production reaches 62.9 million tonnes per annum, representing 61% of total oil and gas production in Indonesia. According to the PwC Oil and Gas Guide 2019 (“2019 PwC Guide”), Indonesia has 453 Tcf of coalbed methane reserves, the sixth-largest in the world, while shale gas reserves are estimated at 574 Tcf.
The UK has a long-established oil and gas industry, with commercial-scale production taking place in the UK Continental Shelf (UKCS) since the late 1960s. Crude oil production levels reached a peak in 1999 and natural gas production levels reached a peak in 2000, and both have been gradually declining since then. However, the oil and gas industry continues to be an important contributor to the UK's economy and energy security. In 2018 1.7 million barrels of oil equivalent (boe) were produced per day.
The Oil and Gas Authority (OGA) (the upstream oil and gas regulator) has estimated that, as at the end of 2018, the remaining UKCS recoverable petroleum resources were in the range of 10 to 20 billion boe, including discovered and undiscovered petroleum resources. In terms of proven and probable (2P) reserves, this has been estimated to be 5.5 billion boe. It has also been estimated that, assuming current production projections, these reserves could sustain production from the UKCS for another 20 years or more.
As far as is currently known, Turkey has limited crude oil and natural gas reservoirs. Nonetheless, there is an established upstream oil and gas industry with respect to the reserves that Turkey currently discovered. Turkish Petroleum Joint Stock Company (“TPAO”), which is a state owned company, is the dominant actor in the upstream oil and gas industry. Current situation regarding natural gas or oil exploration or exploitation licenses can be seen from the map published by the General Directorate of Mine and Petroleum Affairs by clicking here. Most recently, TPAO is searching for natural gas on the north and the west of Cyprus Island which has been the culprit of a tension between Greece and Turkey.
According to the 2018 Report on Oil Market of the Energy Market Regulation Agency (hereinafter “EMRA”), total refinery production for oil in Turkey was 25.002.286,570 tons. Likewise, according to EMRA’s report on Natural Gas Market, 428 million Sm3 was produced in the year 2018. In EMRA’s website, figures relating to September, October and November 2019 were not available, neither for oil nor for natural gas, at the time of writing of this guide. However, as far as the available data is concerned, 2019 natural gas production until August 2019 has been 323,09 Sm3. Therefore, roughly, 480 Sm3 of natural gas production can be expected for the year 2019 if the production after August has not been significantly different than average of 40 Sm3 per month. Oil production until August 2019 has been 22.340.552,642 million tons. Therefore roughly 30.000.000,00 million tons of crude oil production can be expected for the year 2019.
According to the statistics published by Ministry of Energy and Natural Resources General Directorate of Mining and Petroleum Affairs (“GDMPA”), by the end of 2018, Turkey’s natural gas reserves were 25.848.484.470 cubic meters. Total crude oil reserve is 1.074.859.105 million tons.
The State of Israel was established in 1948. In its early days, Israel’s oil industry had some modest success. The first oilfield, Heletz, was discovered in 1955, and yielded 17.2 million barrels of oil. Unfortunately, only small amounts of oil have been discovered since then, though the exploration continues, with the hope of discovering more fields.
Israel’s natural gas industry was set up in 1999 with the discovery of the Noa reservoir off the coast of Ashkelon by the Yam Tethys partnership. A few months later another reservoir, Mari B, was discovered. It was estimated that these reserves held about 45 billion cubic meters (bcm) of natural gas, which provided a limited amount of natural gas to the Israeli market and primarily to the Israeli Electric Corporation, its main customer. Today, these fields are nearly depleted. More fields have been discovered since then, chief among them are the Tamar field off the coast of Haifa, holding an estimated 283 bcm of natural gas, which commenced commercial production in April 2013, and another maritime reservoir, the Leviathan field (535 bcm), which commenced commercial production at the end of December 2019, as well as the Karish and Tanin fields that are set to start production in 2021. Due to these discoveries, a significant portion of Israel’s natural gas demand is now met by local production, independent of foreign import. As of March 2019, Israel estimates that its seabed contains 75 trillion cub feet of gas and 6.6 billion barrels of oil.
Norway has since the 1965 first licencing round had offshore upstream petroleum exploration and production activities. Commercial production started in the early 1970s. For several years, Norway has been a substantial producer of oil & gas. In total 7,3 billion standard cubic meter oil equivalents (Sm3 o.e.) has been produced. Oil production peaked in 2001 with 3,4 mboed. The total annual NCS production peaked in 2004 with 264,2 o.e. Natural gas production may not yet have peaked, but has not made up for the decline in liquids production. Remaining resources still to be produced are estimated by the Norwegian Petroleum Directorate (NPD) to be approx. 8, 3 billion Sm3 o.e.
Norway is still a significant exporter of liquids with approx. 1.9 mboed (crude oil, LPG and condensates) exported. Annually more than 120 BCM (billion standard cubic meter) of natural gas is exported predominantly via large submarine pipelines to the European market, including the United Kingdom. A modest LNG production plant in located on the mainland north of the Arctic Circle. Very small volumes of mostly imported hydrocarbon products primarily for the transportation sector are consumed. Only two small refineries operate. Domestic market use of natural gas represents only about 1.5% of annual natural gas production.
The U.S. has an established and rapidly growing commercial upstream oil and gas industry dating back to the mid-19th-century, with a recent oil and gas boom beginning in 2010. As of September 2019, the U.S. produces nearly 12,463 thousand barrels per day (Bpd) of crude oil. In terms of natural gas production, as of September 2019, the U.S. currently produces 112,879 million cubic feet per day. At the end of 2018, the reserves of crude oil in the U.S. increased 12%, reaching 43.8 billion barrels. Similarly, at the end of 2018, proved reserves of natural gas increased 9% to 504.5 trillion cubic feet (Tcf).