2019’s offshore sanctioning could reach $123 billion in project commitments

January 4, 2019

Prior to the recent oil price decline, E&P’s had their sights set on sanctioning $123 billion of offshore projects in 2019. With a rebound to $60 / bbl Brent, 2019’s offshore project sanctioning has the potential to reach its highest level of activity since 2013. The Middle East will have the most shallow water projects up for commitment decisions during the year. Moving into deeper waters, South America will surely take the global stage. The continent looks to review the largest deepwater plays during 2019.

However, there is still more work to be done to make all of these projects economically attractive. 15% of the potential $123 billion to be committed in 2019 have breakeven prices over $60 per barrel. Of those, the vast majority are for new fixed and floating facilities. For 2019 to reach its full offshore sanctioning potential, further cost reduction efforts on these projects are needed.

Learn more about DCube

###

Contacts

Matthew Fitzsimmons
Vice President, Oilfield Service Research
Phone: +47 24 00 42 00
matthew.fitzsimmons@rystadenergy.com

Marina Dervishogullari
Marketing Manager
Phone: +47 24 00 42 00
marina.dervishogullari@rystadenergy.com

About Rystad Energy

Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to the global energy industry. 

Our products and services cover energy fundamentals and the global and regional upstream, oilfield services and renewable energy industries, tailored to analysts, managers and executives alike.