The North Sea region is expected to see 36 crude and natural gas projects start by 2025, with the UK having the highest number of planned projects in the region at 25, according to new analysis from GlobalData.
The report titled, Production and Capital Expenditure Outlook for Key Planned Upstream Projects in North Sea, states that the UK is followed by Norway and Denmark with nine and two planned projects respectively.
Of the 36 projects, 31 will be crude while the remaining five gas projects would be undertaken by the UK.
GlobalData’s senior upstream analyst Joseph Gatdula said: "The UK will contribute the most planned projects in the North Sea region to 2025 as most new fields are smaller, less expensive tie-backs that utilise existing infrastructure."
With four projects, Norwegian company Statoil will lead the North Sea region in terms of operatorship of planned projects. All four will be crude projects. EnQuest and Maersk Olie og Gas will jointly hold the second place with three assets in the region.
By 2025, core planned projects in the region are expected to contribute 819,000 barrels of oil per day, and 1.1 billion cubic feet per day to global production. All key projects in the region will require a capital expenditure (capex) of $86.5bn, with $43.4bn spent between now and 2025.
Norway is expected to lead the region in terms of capex spending, with $27.8bn investment by 2025. Almost $12bn will be invested in the Johan Sverdrup project alone. Statoil will make the highest capex spending of $17.8bn on projects over the next decade.
GlobalData upstream analyst Matthew Beven said: "Norway will lead North Sea capital expenditure, with Statoil contributing around 65%. This is mainly due to the Johan Sverdrup project due on stream in 2019."
The North Sea region offers significant potential to countries and companies as it has major undeveloped discoveries including Tommeliten Alpha, Skipper and Peon in the northern basin.