Brazil is set to lead the global offshore oil and gas industry in terms of planned projects, with a staggering total of 40 developments scheduled to start operations by 2025, out of an anticipated total of 236 worldwide, according to research and consulting firm GlobalData.
The company’s latest report states that the UK and the US follow Brazil, with 29 and 21 planned projects respectively. Key offshore planned projects around the world are expected to contribute an incremental 6.8 million barrels of oil per day in 2025, and 36.3 billion cubic feet per day of natural gas.
Matthew Jurecky, GlobalData’s head of oil & gas research and consulting, explains: “The offshore commercial reserves in Brazil are second only to Russia, Iran, and Mozambique. GlobalData’s analysis shows there are an estimated 13.3 billion barrels of commercially recoverable reserves from announced projects in offshore Brazil. To put this in perspective, planned offshore projects in Norway, United States, United Kingdom and Nigeria total 12.9 billion barrels of commercially recoverable reserves altogether.”
While National Iranian Oil Company is expected to lead in terms of production volumes, Petroleo Brasileiro S.A (Petrobras) will lead globally in terms project count, with 35 planned, of which 34 are crude and one is natural gas. Petroleos Mexicanos and Chevron Corporation occupy second and third places with nine and eight projects planned, respectively.
“Brazil’s pre-salt was a game-changer which the government tried to protect, but after being hit by political and corruption scandals on top of economic recession, a clear opportunity has emerged where international oil companies can play a more central role in a more balanced regulatory environment – but the political trade-offs to allow this will be challenging,” Adrian Lara, GlobalData’s senior upstream analyst covering the Americas, explained.
GlobalData’s report also states that in terms of proposed capital expenditure, USD871.7 billion is estimated to be spent bringing planned offshore projects online globally, of which USD500.5 billion is expected to be spent between 2016 and 2025. Brazil will also lead in this regard, with capital investment of USD116.2 billion over the forecast period. Petrobras will have the highest share of spending among companies in the global offshore oil and gas industry, and is expected to spend US$90.9 billion on key planned projects over the next 10 years.
Source: Mark Venables / Oil & Gas Technology