Oil companies are set to resume hydrocarbon exploration but will not exploit reserves as oil price remains a challenge for big ticket developments. Leading oil majors are expected to increase their exploration capital expenditure (CAPEX) by 20 to 30 percent next year, resume drilling in deepwater in a bid to build hydrocarbon-based assets, said John Jeffers, Group Development Director for Oil & Gas at SNC-Lavalin. Jeffers sees asset swaps among the majors, with a good level of acquisitions of reserves from medium or small holders in the industry. Companies are more efficient having slashed capital expenditures (CAPEX) and operational expenditures, added Jeffers. “Oil majors can no longer stay away from building reserves,” Jeffers told Rigzone at the Singapore International Energy Week, adding it is a matter of their standing in the global businesses. Opportunities are there as daily rig rates are at $50,000 to $60,000, down from the $120,000 […]