Analysis of trends in conventional exploration, by water depth, over the period 2007-2016, including resources, value creation and returns.
Global database 2007 2016 Total exploration and appraisal wells 16 983 Exploration and appraisal costs (US$ Billion) 730 Number of discoveries 4 145 New field resource added 1 (billion boe) 245 Total resource discovery costs (US$/boe) 1.96 Commercial reserve discovery costs (US$/boe) 4.37 Overall success rate 2 39% Commercial success rate 16% Value creation for the period 3 (US$ Billion) 221 Full cycle IRR for the period (Base price) 8% 1. Total conventional resource discovered. 2. Overall success rate includes all discoveries commercial good technical and contingent. 3. NPV at the Base price discounted at 10% nominal to the start of 2016. Based on the development value of new field discoveries less post tax exploration and appraisal spend. Source: Wood Mackenzie Assumptions Ten year study period 2007 2016 Inflation base year 2017 Inflation 2% Discount date 1st January 2017 Source: Wood Mackenzie