Press Release

Sanctioning plans in Norway and UK look promising

July 11, 2017
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Author: Gitte Bromander, Project Manager, Rystad Energy

Publisher: Offshore Magazine

The project sanctioning activity in the North Sea can be characterized by distinct time periods. After a post finance-crisis drought, the 2011 to 2013 period saw a boom in new PDO/FDP approvals largely fueled by high oil and gas prices. With the exception of Johan Sverdrup in 2015, the last three years have seen few new approvals driven by a significant cost focus and the oil price downturn. However, with efficiency improvements, simplifications, downscaling and oil-service margin reductions, several projects have now approached commerciality, even at the current price sentiment.

Communicated sanctioning plans in Norway and UK show signs of increased activity going forward. Four fields have been approved in Norway so far in 2017 including Utgard, Byrding, Dvalin and Trestakk. Centrica has also submitted the PDO for Oda. In the UK, Hurricane Energy is expected to take the final investment decision (FID) on the Lancaster EPS and several FIDs are expected in 2018.

A high share of the expected new projects in Norway and the UK is small subsea tie-back developments. However, in 2018 and 2019, several large stand-alone projects are also expected to be sanctioned including Johan Castberg (where Statoil plans to deliver the PDO in the last quarter of 2017), Johan Sverdrup phase 2, Wisting, Alta/Gohta and Rosebank/Lochnagar. This implies that the largest upcoming project approvals in the North Sea, in terms of development capex, are located in Norway.

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Article Contact

Contact: Gitte Bromander, Project Manager
Phone: +47 24 00 42 00

About Rystad Energy

Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products.

Rystad Energy’s headquarters are located in Oslo, Norway. Further presence has been established in Norway (Stavanger), the UK (London), USA (New York & Houston), Russia (Moscow), Brazil (Rio de Janeiro), as well as Singapore and Dubai.