BAKU, Azerbaijan, Dec.13
By Leman Zeynalova – Trend:
It is expected that $225 billion worth oil and gas projects will be sanctioned next year, Trend reports with reference to Rystad Energy, the independent energy research and consulting firm headquartered in Norway.
In 2019, oil and gas projects representing around $200 billion of investments were sanctioned. In 2020 Rystad Energy forecasts as much as $225 billion worth of projects will be sanctioned, driven primarily by gas projects, and with $50 billion coming from onshore liquefied natural gas (LNG) facilities. Offshore project sanctioning is likely to surpass $100 billion in 2020.
“With Brent oil prices at $60 per barrel, E&P operators are able to sanction oil and gas projects worth about $200 billion per year, driving a lot of interesting contract awards and elevating optimism among oilfield service providers,” says Audun Martinsen, head of oilfield services research at Rystad Energy.
“While most offshore projects sanctioned this year have breakeven prices below $40 per barrel, we foresee breakeven risk for the period 2020 through 2023. During this four-year period, offshore projects worth $25 billion, or almost 7 percent of the total, have a breakeven price above $60 per barrel.”
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