Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Swell of offshore project approvals brings ‘new investment cycle’ – Rystad

Saipem Castorone at the Johan Sverdrup field in the North Sea. (Photo: Bo B. Randulff / Roar Lindefjeld / Equinor ASA)
Equinor's Johan Sverdrup development.

A swell of offshore project approvals means a “new investment cycle is in the making”, according to analysts.

Rystad Energy said more than 20billion barrels of oil equivalent was sanctioned globally last year, the highest level seen since 2011 and a 110% jump on 2018.

This was driven by the approval of several large offshore developments, such as the Marjan and Berri expansions in Saudi Arabia.

The Marjan expansion was by far the largest to be approved, representing an investment of nearly $12bn, and designed to boost the field’s output by 300,000 barrels per day.

Other approvals included Total’s Area 1 development in Mozambique, while Chevron’s Anchor field development in the US was the largest project within the Atlantic region, just ahead of the second phase of Equinor’s Johan Sverdrup field in Norway.

This rise in approvals saw total offshore capital expenditure grow by 5%,  with overall global investment expected to continue to increase by 8% in 2020.

Espen Erlingsen, head of Upstream Research, said: “This illustrates that a new offshore investment cycle is in the making.”

Rystad Energy

Investment specifically in greenfield developments like Marjan and Berri totalled $92.4bn last year, compared to much higher numbers amid the last investment cycle between 2010 and 2014.

However Rystad said this “does not tell the whole story, as cost levels within the E&P industry have come down significantly since 2014”.

Rystad said project approvals were reflected by the level of free cash flows, which hit $90bn globally last year.

This was a reduction on 2018’s level of $107.6bn, but still the third best year on record and compares “very favourably” to the last investment cycle between 2010 and 2014.

Recommended for you

More from Energy Voice

Latest Posts