In Africa, oil explorers will keep drilling and producing from select locations such as onshore east Africa and less complex projects off the West African coast even with oil at $60 a barrel.
For example, low operating costs of around $10 per barrel of oil equivalent for Ghana’s Jubilee field will mean cuts have a limited impact there compared to operating costs in the UK North Sea (a mature oil region) which average $27 per barrel of oil equivalent — a whopping 170% margin on a like for like basis!
However, frontier projects such as those in the pre-salt basins offshore Namibia and South Africa as well as Angola and Gabon where vast oil reserves deep underwater beneath a salt layer are susceptible to cuts if the price continues to fall.
Full story @ http://af.reuters.com/article/investingNews/idAFKBN0M618Z20150310?sp=true