A total of 36 crude and natural gas projects are expected to commence operations in the North Sea by 2025, with the UK being responsible for 25, while nine will be located in Norway and the remaining two in Denmark, according to research and consulting firm GlobalData.
The company’s latest report* states that of these planned projects, 31 will be for crude, with all five gas projects to be undertaken by the UK. In terms of their impact on global crude production, key planned projects in the North Sea are expected to contribute 819,000 barrels of oil per day (mbd) and 1.1 billion cubic feet of gas per day (bcfd) by 2025.
Joseph Gatdula, GlobalData’s Senior Upstream Analyst, explains: “The UK will contribute the most planned projects in the North Sea region to 2025 as most new fields are smaller, less expensive tie-backs that utilise existing infrastructure.”
GlobalData’s report also states that the total capital expenditure (capex) incurred by key planned projects is expected to total US$86.5 billion, of which US$43.4 billion is anticipated to be spent between 2016 and 2025. Norway is expected to lead the region in these terms, with capex of US$27.8 billion during the 2016-2025 period.
Matthew Beven, GlobalData’s Upstream Analyst, comments: “Norway will lead North Sea capital expenditure, with Statoil contributing around 65%. This is mainly due to the Johan Sverdrup project due on stream in 2019.”