Rystad Energy: more delayed projects sanctioned H1 2017 than the entirety of 2016

Rystad Energy is tracking FID delays since the second half of 2014 to post-appraisal pre-sanctioned upstream projects. We find 17 of these delayed projects have since been launched, accounting for an estimated US$78 billion of development spending. Tengizchevroil’s 2016 Tengiz FGP/WPMP expansion in Kazakhstan accounts for about 40% of this spend.

Earlier this week (May 29), Husky Energy announced the sanction of its deepwater White Rose West project off Newfoundland. This was 2017’s second double-drop week, after week 8 saw BP’s Mad Dog 2 (deepwater Gulf of Mexico) and Noble Energy’s Leviathan phase 1 (deepwater Israel) projects exit the FID delay tracker. In addition, projects in China, Iraq, & Vietnam, as well as an oil sands scheme, finally reached FID during 2017.

“In spite of this apparent positive momentum, the FID delay list has continued to grow. Since we last published in January 2016, the list has grown in almost all themes, except oil sands, which is not surprising since oil sands projects are largely confined to one province in Canada, while all other themes have a global candidate pool. The ongoing results of the oil price pain is clear to see – still over 100 projects delayed, accounting for nearly 35 billion boe and US$300 billion spend estimate at delay,” says Readul Islam, Research Analyst at Rystad Energy.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/02062017/rystad-energy-more-delayed-projects-sanctioned-h1-2017-than-the-entirety-of-2016/