GlobalData’s latest report, ‘Semi-Annual Production and Capital Expenditure Outlook for Key Planned and Announced Upstream Projects in North Sea – UK Leads Planned Projects Count’, indicates that a total of 46 crude and natural gas projects are expected to start operations in four countries in the North Sea during 2018–2025.
Of these, 16 are planned projects with identified development plans and 30 are early-stage announced projects that are undergoing conceptual studies and that are expected to get approved for development.
The key projects in the North Sea are expected to contribute about 948.5 thousand barrels of oil per day (mbd) of global crude production and about 1,394 million cubic feet per day (mmcfd) of global gas production in 2025.
GlobalData’s research indicates that among countries in the North Sea region, the UK leads with 10 planned projects, Norway and the Netherlands following with five and one projects, respectively. The UK also leads in terms of announced projects with 22, followed by Norway and Denmark with seven and one, respectively.
Major planned and announced projects count and capex by country, 2018–2025
Source: Upstream Analytics. © GlobalData
Among North Sea operators, Statoil Petroleum AS and Statoil UK Ltd lead with the highest operatorship with two planned projects each, of which two are crude and two are natural gas projects. In terms of announced projects, Independent Oil and Gas Ltd (IOG) has interest in four early-stage projects, followed by Statoil ASA, Statoil UK Ltd, Aker BP ASA, and Parkmead with two projects each.
Proposed capital expenditure (capex) of $21.7bn is expected to be spent between 2018 and 2025 to bring the planned projects online in the North Sea, with $15.2bn expected to be spent on key announced projects.
Among countries, Norway, the UK, and the Netherlands are expected to be the highest capex spenders on key planned projects with about $12.1bn, $7.9bn, and $400m, respectively, during 2018–2025. In early-stage projects, the UK leads with a capex of $8.9bn, followed by Norway with $6.8bn.
Statoil ASA, Lundin Petroleum AB, and A.P. Moller – Maersk AS have the highest capex spending on planned projects with $6.7bn, $2.2bn, and $2bn, respectively. Among early-stage announced projects, Whalsay Energy Ltd, BP Plc, and Aker BP ASA lead with $2.1bn, $1.5bn, and $1.4bn spent on capex, respectively.