Offshore staff
OSLO, Norway — Rystad Energy expects annual greenfield capex for offshore oil and gas projects to exceed $100 billion in 2023 and in 2024.
Offshore activity should account for 68% of all sanctioned conventional hydrocarbons over the period, the consultant said, up from 40% between 2015 and 2018. And offshore developments should make up almost half of all sanctioned projects in the next two years, up from 29% from the period 2015-2018.
Supply chain spending should rise by 16% in 2023-2024, with suppliers of offshore rigs, vessels, subsea equipment and FPSOs all set to benefit.
One of the key drivers is offshore activity in the Middle East, which will lead upstream spending globally thanks to giant projects in Saudi Arabia, Qatar and the UAE. The area’s offshore spending surge will continue rising from $33 billion this year to $41 billion in 2025.
Close behind are South America and northwest Europe. Brazilian upstream spending should approach $23 billion this year, with offshore Guyana investments totaling $7 billion. Longer term, Petrobras plans to deploy 16 FPSOs on six fields offshore Brazil by the end of the 2020s, and Guyana’s Stabroek Block is set for continued development growth.
UK offshore spending is on track to grow by 30% to $7 billion, while Norwegian investments are projected to increase by 22% to $21.4 billion.
In North America, US offshore expenditure will exceed $17.5 billion while Mexican investments should total $7.3 billion.
Middle Eastern acceleration is possible, Rystad added.
