Report: Eleven projects have reached FID so far this year

Eleven projects have reached FID so far this year, with nine projects being either shallow- or deepwater, according to Evercore ISI’s latest Offshore Oracle report.

Notably, these eleven projects account for over $30 billion of committed investment and 3+ billion Boe of reserves, mostly comprised of deepwater FPSO developments. 

Citing Wood Mackenzie data, Evercore says that another 20-plus projects are expected to reach FID by the end of the year, which compares to a total of 24 sanctioned projects in 2023. 

Wood Mackenzie expects remaining projects could exceed $80 billion of investment and 9 billion Boe of reserves. While the total number of FIDs in 2024 is expected to be 46% higher than last year, Evercore noted that the total committed capex is expected to be slightly below the ~$125 billion seen in 2023.

Notable recent offshore FIDs include: 

• ExxonMobil/Liza Complex–FPSO 6 project. The Whiptail development is expected to add ~250 MBbl/d by the end of 2027 in Guyana. The total production capacity of the Stabroek block will increase to 1.3 MMBbl/d. This project will be comprised of 48 production and injection wells and exceed $10 billion of investment.
• Petrobras/Atapu FPSO 2/Sepia FPSO 2 projects. Petrobras and its partners, including Shell and TotalEnergies, are expected to pursue the second development phase of the Atapu and Sepia fields in Brazil. Two FPSO newbuilds in Atapu and Sepia will increase production capacity by ~450 MBbl/d (225 MBbl/d each) and cost $10+ billion.
• TotalEnergies/Kaminho project. TotalEnergies announced FID on the Kaminho FPSO project in Angola. This project is anticipated to add 70 MBbl/d of production capacity, target 375 MMBbl of reserves, and cost ~$5.5 billion.