Report: Brazil to lead global offshore oil and gas industry with highest capital expenditure
The global offshore oil and gas industry will be headed by Brazil, with the highest capital expenditure (capex) spending of $116.2bn from 2016 to 2025, according to a report by GlobalData. Two offshore projects, namely Libra and Itapu (Florim), are expected to receive $15.8bn from the total capital investment.
Titled ‘Q2 2016 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in the Global Offshore Industry – Brazil Leads Globally with Staggering Pipeline of Planned Projects’, the report states that among the companies with the highest capex spending, Petroleo Brasileiro S.A. will lead with an estimated spending of $90.9bn over the next ten years.
Globally, an estimated $871.7bn in capex is expected to be invested to commence production from key planned projects, with $500.5bn expected to be spent from 2016 to 2025.
The country will also dominate the market in terms of the number of planned projects scheduled to start operations by 2025 with 40 planned projects, followed by the UK (29) and the US (21). Overall, 236 key crude and natural gas projects are expected to commence production by 2025 globally.
Brazil is also expected to have the highest planned offshore oil and gas production by 2025, while National Iranian Oil Company will have the highest planned offshore oil and gas production.
The companies anticipated to lead in terms of planned projects operatorship include Petroleo Brasileiro S.A. with 35 planned projects, followed by Petroleos Mexicanos and Chevron Corporation with eight and nine planned projects respectively.
The GlobalData report reveals that North Pars and Sardar-e Janga discoveries are two notable underdeveloped findings in the offshore oil and gas industry.
Both discoveries are located in Iran and have an estimated 2P reserves of 8,333 million barrels of oil equivalent (mmboe) and 8,000mmboe respectively.