Ebola outbreak in Liberia delays ExxonMobil exploration
drilling
Analysis:
The continued spread of the Ebola virus in Guin...
Sierra Leone. Neither country has any drilling plans announced for the
second half of 2014. However, the crisis has held b...
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Spread of the Ebola virus in Guinea, Sierra Leone and Liberia has led ExxonMobil and COPL to delay drilling

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Spread of the Ebola virus in Guinea, Sierra Leone and Liberia has led ExxonMobil and COPL to delay drilling

  1. 1. Ebola outbreak in Liberia delays ExxonMobil exploration drilling Analysis: The continued spread of the Ebola virus in Guinea, Sierra Leone and Liberia has led ExxonMobil and partner Canadian Overseas Petroleum Ltd (COPL) to delay drilling block LB-13 off the coast of Liberia until the virus has been brought under control. COPL has stated that the move is to protect expatriates in the country from contracting the virus. COPL is optimistic that drilling will take place in the fourth quarter, assuming the virus is brought under control. Partner, ExxonMobil, has decided not to close its offices in the capital. It is still expected that the partners will use the drilling rig "West Tellus" to complete the work later in the year, following the completion of drilling in neighboring block, LB-12, held by Chevron, Oranto Petroleum and Eni; the results of this well have yet to be announced. The ExxonMobil well would be the first in a two-well drill programme planned for LB-13, which ExxonMobil farmed-into in 2013. Significance: With ExxonMobil postponing drilling due to the unchecked virus, there is a chance that other companies could follow suit. Anadarko, which spudded a first well offshore Liberia (block 10) in July 2014 also has a second well planned for later this year. At this stage, it is expected that the well will proceed as planned, but if the epidemic worsens Anadarko may be forced to follow Exxon’s example and postpone drilling. Meanwhile, African Petroleum has also pushed back drilling plans in Liberia and Sierra Leone, though this was apparent earlier in the year, and likely not a result of the Ebola outbreak. Drilling delays are unlikely to be an issue in the other main areas to have suffered from the spread of the Ebola virus, Guinea and
  2. 2. Sierra Leone. Neither country has any drilling plans announced for the second half of 2014. However, the crisis has held back progress on Guinea's new hydrocarbon legislation due to travel restrictions by consultants advising on the revised code. Danny Cheung Asia Pacific Director Corporate Communications 8 Marina View #12-01 | Asia Square Tower 1 | Singapore Phone: +65 6439 6192 | Mobile: +65 9171 3200 Danny.Cheung@ihs.com This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you.  Please consider the environment before printing this e-mail.

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