Rig players set for '$17bn drilling feast' off Africa

Bright prospects: for African drilling market

Steve Marshall

 12 March 2013 15:47 GMT

The potential of West Africa’s emerging pre-salt play and big gas discoveries off East Africa are set to drive an 18% leap in annual drilling expenditure to more than $17 billion across the wider region over the next five years, according to a business intelligence firm.

The forecast from New York-based GBI Research, up from drilling spending of $13.56 billion in 2012, is based on expectations of higher exploration activity across Africa and the Middle East.

Rig contractors, particularly those like Seadrill and Ensco operating modern units designed for Africa’s deep-water plays, are set to cash in on the prospecting surge with GBI estimating cumulative drilling expenditure of $77.3 billion over the period from 2012 to 2016 – up 22% on $63.5 billion from the previous five years.

West Africa is leading the way as players such as Statoil and Total target regional pre-salt plays after being awarded…

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