Capital expenditure on upstream projects in Africa to surge

11 September 2017 (Last Updated September 11th, 2017 05:46)

GlobalData’s latest report, “Monthly Global Upstream Review, June 2017 - Capital Expenditure in Africa to Zoom” indicates that globally, total oil and gas production is expected to increase by 2.6 percent during the 2017–2021 outlook period.

Capital expenditure on upstream projects in Africa to surge

GlobalData’s latest report, “Monthly Global Upstream Review, June 2017 - Capital Expenditure in Africa to Zoom” indicates that globally, total oil and gas production is expected to increase by 2.6 percent during the 2017–2021 outlook period. Total production outlook is expected to increase to 61,367 million barrels of oil equivalent (mmboe) by 2021. The total production outlook in 2021 has increased by 28 mmboe when compared with the May 2017 report.

The number of planned projects has increased by two when compared with the May report. A total of 432 planned projects are expected to start production globally by 2021. Among regions, Asia (71) leads with the highest number of planned projects, followed by Africa (70) and Europe (65). The capital expenditure (capex) outlook for 2021 has increased by 1.8 percent when compared with the May 2017 report. Total capex is expected to decrease from $428,405m in 2017 to $366,216m in 2021.

Two announced and one producing field in Africa were added in June 2017. The two announced fields, Golfinho-Atum Complex and Mamba Complex, are in Mozambique, while the producing field, Mboumba, is in Gabon.

In Asia, seven producing fields were added in June 2017. All the fields are located in Pakistan. The country also witnessed two discoveries, Aqeeq-1 and Chabaro-1. In Caribbean, two discoveries were made in June 2017. Both the discoveries (EAM1-NOP-Macadamia-1 and Savannah) are in Trinidad and Tobago. In Europe, a producing field was added in France, and two announced fields in the UK.

An announced field in Uzbekistan was added in the Former Soviet Union (FSU) in June 2017. The region also witnessed a discovery in Russia, Olginskoye Central (Tsentralno-Olginskoye) 1.  In North America, 54 producing fields and an announced field were added in the US in the month. A producing field was also added in Mexico. In South America, a discovery called Jacamar-1 was made in Colombia.

Globally, 10 projects were postponed in June 2017 when compared with the previous report. Of these, two are in Asia, three in the Middle East, two in North America, and three in Oceania.