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GlobalData: Over US$58.5 billion will be spent on North Sea’s upstream CAPEX by 2020

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Oilfield Technology,

CAPEX of US$19.5 billion per year is forecast to be spent on 568 oil and gas fields in the North Sea between 2018 and 2020, according to GlobalData.

CAPEX in the North Sea’s traditional oil projects will add up to US$35.5 billion over the three-year period, while heavy oil fields will require US$5.1 billion over the same period. Investments into gas projects in North Sea would total US$17.9 billion in upstream CAPEX by 2020.

Shallow water projects will be responsible for over 92% of US$58.5 billion of upstream CAPEX in North Sea, or US$53.6 billion by 2020. The deep water projects will necessitate US$4.9 billion in CAPEX over the period.

GlobalData expects that Statoil ASA will lead North Sea in CAPEX, investing US$9.8 billion into the region’s upstream projects by 2020. Petoro AS and BP Plc will follow with US$3.5 billion and US$3.3 billion invested into North Sea’s projects between 2018 and 2020.

Johan Sverdrup, a planned conventional oil field in the Northern North Sea Basin, will lead capital investment with US$8 billion to be spent between 2018 and 2020. Statoil Petroleum AS is the operator for the field. Mariner, another planned oil field in the Northern North Sea Basin, follows with a CAPEX of US$2.6 billion. Statoil (UK) Ltd is the operator of the field. Tyra, a gas producing field in Central Graben Basin, will follow next with a CAPEX of US$2 billion. Maersk Olie og Gas AS is its operator. All the three fields are shallow water fields.

GlobalData reports the average full cycle CAPEX/boe for North Sea projects at US$12.82. Shallow water projects have the lowest full cycle CAPEX/boe at US$12.76, followed by deep water developments with US$15.73.

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