In conventional exploration, we are executing a strategy focused on both short-term value through established ventures and mid-term growth through expanding our heartlands and selectively exploring in new frontier basins.
Following the acquisition of BG and our exit from offshore Alaska, exploration expenditure has been reduced to $2.5 billion per year. Our investments are balanced between:
- exploration near our existing assets, which can be brought on stream quickly and generate high value;
- testing new geological concepts and finding new oil and gas resources within our existing heartlands;
- building new frontier positions in under-explored selective frontier areas with the potential for significant discoveries, but which will take longer to develop.
In 2015, we had six notable discovery and appraisal successes – in Australia, Brazil, the UK and the USA. We made 13 near-field discoveries close to our existing Upstream assets, with some of these new discoveries already in production by the end of 2015.
In 2015, in the Gulf of Mexico we had two material appraisals close to existing infrastructure and areas under development. From 2010 to 2015, we added around 1.2 billion barrels of resources (including resources from deals) in the Gulf of Mexico. In Brazil, progress has been made at the Libra pre-salt field following our entry into the position in 2013.
We added new conventional exploration acreage in Algeria, Australia, Indonesia, Italy, Myanmar, Norway, the UK and USA.
Shell will continue to deliver high-value exploration through high-grading the integrated Shell and BG portfolio, leveraging the best of both.
Conventional exploration themes
Build-up of acreage, de-risking and drilling in under-explored basins
Time to production
High-value near field exploration and drilling new geological plays in Shell producing basins
Time to production
Prospect size (million boe)
Time to production (years)