Global Oil Majors Return to Frontier Exploration for Growth

Industry Overview - The global oil and gas industry is shifting focus to frontier regions due to shrinking discovered volumes, rising demand, and energy security concerns [1] - Six major companies (ExxonMobil, Shell, TotalEnergies, BP, Chevron, and Eni) account for approximately 20% of conventional oil and gas volumes discovered since 2020 [1] TotalEnergies - TotalEnergies reduced its exploration spending to $835 million in the previous year from an annual budget of $1 billion to $1.2 billion during 2017-2023 [2] - The company is expected to maintain exploration spending at 2024 levels, but recent acquisitions indicate ongoing interest in frontier exploration [2] - TotalEnergies acquired a 25% working interest in 40 Chevron-operated offshore exploration leases in the Gulf of America and a 25% stake in Suriname's offshore Block 53 [2] - The company aims for production growth of 3% per year through 2030, focusing on low-cost, low-emission options [2] ExxonMobil - ExxonMobil aims to replicate its success in Guyana, where it discovered over 13 billion barrels of oil equivalent since 2015 [3] - The company has acquired exploration rights in Trinidad & Tobago and is studying four offshore blocks in Libya [3] - ExxonMobil's expertise in deepwater drilling and advanced technologies may allow it to access previously unreachable reservoirs [3] Chevron - Chevron has been less active in exploration but has recently acquired frontier exploration acreage in various regions [4] - The company has secured nine offshore blocks in Brazil's Foz do Amazonas Basin and signed two risk service contracts in Angola's ultra-deep waters [4] - Chevron is also exploring opportunities in Namibia, participating in the Orange and Walvis basins [4] BP - BP has revised its exploration strategy, moving away from low-carbon commitments to focus on growing its oil and gas business [5] - The company plans to drill around 40 wells over the next three years with an average annual exploration budget of $1.2 billion [5] - BP's recent Bumerangue discovery in Brazil signifies a return to deepwater exploration, and it plans to drill its first ultra-deepwater well off Libya [5] - The company has completed the acquisition of interests in two offshore exploration and development blocks in Azerbaijan's sector of the Caspian Sea [5]