Oil majors are “on pace” to approve over $37 billion in projects during the calendar year, according to Rystad Energy.
The independent energy research company said that over 30 percent ($12 billion) of these had already been approved during the second quarter.
BP plc, Eni S.p.A, Royal Dutch Shell plc, Total S.A, ExxonMobil Corporation and Chevron Corporation approved over $77 billion worth of greenfield projects from 2015 to the first quarter of 2018, Rystad revealed.
Of this figure, BP approved the most at $27.6 billion, followed by Eni at $25.4 billion, and Shell at $11.1 billion.
“BP’s best-in-class lifting costs from 2017 of below $6 per producing barrel should give investors confidence when all these new projects come online,” Matthew Fitzsimmons, vice president at Rystad Energy, said in a company statement.
“Eni’s recent $25.4 billion greenfield approvals have exclusively been to bolster its offshore portfolio. The company’s investments in several mega offshore projects, such as Coral FLNG, Sankofa East FPSO and three phases of Zohr, are good news in relation to the offshore industry’s attempt to rebound,” he added.
Eni, Shell, Total, Chevron and Exxon are all scheduled to release their second quarter results this week. BP is expected to release its second quarter results on July 31.
In a recent report, Moody's Investors Service said it expects Shell, Total, Chevron, Exxon and BP to “continue to pursue efficiencies and maintain competitive cost structures in order to reap the benefits of higher prices”.