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Offshore project sanctioning could hit $123bn this year: Rystad Energy

A rebound in offshore project sanctioning could see some $123bn worth sanctioned this year boosted by $18bn in recent commitments by Saudi Aramco, according to Rystad Energy.

According to the analyst cost savings over the last five years have propelled a new wave of offshore project sanctioning this year.

To date some $56bn worth in offshore projects have been sanctioned boosted by $18bn worth of project commitments from Saudi Aramco related to the Marjan and Berri expansion projects. With more commitments coming Rystad believes overall offshore project sanction could hit $123bn this year compared to $69bn last year.

“Up to $16bn of projects to be sanctioned this year remain at high risk of not receive funding, as they require robust oil prices over $60 per barrel to breakeven,” the analyst commented.

“However, this still leaves plenty of other projects with lower breakeven prices well positioned to receive funding and kick-off execution efforts. This is made possible due to lower costs for these offshore projects.”