Brazil drives global capex for upcoming oil and gas projects

Close to $790bn will be spent between 2018 and 2025 on 615 upcoming oil and gas fields globally, according to a Globaldata analyst. Capital expenditure (capex) into conventional oil, unconventional oil, heavy oil and oil sands projects would form $350bn, $3bn, $40.2bn and $43.4bn of the world’s capital spend respectively over the eight-year period. Conventional gas projects will require $348bn, while the investments into unconventional gas and coal bed methane (CBM) projects would total $5.5bn in upstream capital expenditure by 2025.

Brazil accounts for $80.7bn or over 10.2% of total capex into upcoming projects globally over 2018 to 2025. The country has 48 announced and planned fields. The ultra-deepwater fields Libra Central with $13bn, Carcara with $9bn and Lula Oeste with $6.5bn will require the highest capex over the 8-year period. All three are conventional oil projects.

Russia is expected to contribute about 8.8% to the total capex spending globally between 2018 and 2025. The country has 54 planned and announced fields. Kovyktinskoye, onshore conventional gas field with capex of $9.0bn, Sakhalin 3 (Kirinskoye South (Yuzhno-Kirinskoye)), conventional gas shallow water with a capex of $8.5bn, and Chayandinskoye, conventional gas onshore field with a capex of $5.9bn will have the highest level of capital spending by 2025 among Russia’s upcoming projects

Nigeria, Australia, Mozambique, Canada, Norway, Indonesia, and the UK, together have a capex $277bn, or about 35.9% of the total capex spending on upcoming projects over the next eight years globally.

GlobalData expects that over their lifetime, the 615 upcoming oil and gas projects globally will call for $1,671bn in capex to produce over 86,113 million barrels of crude and 836 trillion cubic feet of gas. Upcoming ultra-deepwater projects will have the highest lifetime capex at $448bn. Deepwater projects will require $307bn over the lifetime, while onshore and shallow water projects carry a total capex of $430bn and $487bn respectively.

Capital expenditure into upcoming projects globally  by 2025

Source: Upstream Analytics                                                                                                                 © GlobalData