$43B Slated for North Sea Projects Through 2025

Sixty-seven oil and gas projects offshore four North Sea countries should start up through 2025, representing $43.1 billion in investment, according to a new report from GlobalData.

“In 2025, key projects in the North Sea are expected to contribute about 1,327.4 thousand barrels of oil per day (Mbd) of global crude and condensate production and about 1,924.4 million cubic feet per day (MMcfd) of global gas production,” Jonathan Markham, GlobalData energy analyst, said in a written statement emailed to Rigzone.

In its report, “H2 2018 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in the North Sea, GlobalData states that approximately $18.9 billion will be spent to bring the planned projects online and $24.2 billion will go toward key announced projects. Markham pointed out that the U.K. sector of the North Sea boasts 11 planned oil and gas projects – the highest number among the countries. Norway will host eight projects and the Netherlands two, he added.

“The UK also leads in terms of announced projects with 25, followed by Norway and the Netherlands with 18 and two, respectively,” said Markham.

A breakdown of anticipated project starts in the North Sea countries, including Denmark, appears in this graph provided by GlobalData.

In terms of capital expenditure through 2025, Norway tops the list with an anticipated $21.2 billion, stated GlobalData. Of this total, $12.8 billion will go to key planned projects and the remaining $8.4 billion is slated for announced projects, the consultancy noted. The planned UK CAPEX for the period follows at $20.2 billion - $5.6 billion for key planned projects and $14.6 billion on announced project, added the firm.

GlobalData also reported that the top three North Sea operators in terms of planned project spending through 2025 include Equinor ASA ($6.4 billion), Lundin Petroleum AB ($2.2 billion) and Petoro AS ($1.9 billion). The firm added that leaders in terms of spending on early-stage announced projects include Bridge Petroleum 4 Ltd. ($4.7 billion), Aker BP ASA ($2.2 billion) and Whalsay Energy Ltd ($2.1 billion).