I understand why US off shore finding costs are high when you are drilling 4000 feet down in the Gulf of Mexico.’
Why are finding costs in Africa so much more than the rest of the world? After all, it is Africa. Must be the payoff to the Nigerian drug lords, etc.
“Why are finding costs in Africa so much more than the rest of the world? “
some of the most lucrative deep water developments are offshore Nigeria and Angola.
best quality crude produced in the world, Bonny Light.
No local infrastructure, so most of the high-tech equipment must come from elsewhere like Houston. Expensive to get personnel there too.
I also recall there are a lot of security costs built into production facilities.
As an example, Texaco located one of its offshore Nigeria platforms to be beyond artillery fire by the rebels.