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.”

Posted 22 August 2019

© Copyright 2019 Seatrade Informa Markets. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade Informa Markets.

Kris Vedat - Seatrade Offshore Marine & Workboats Middle East

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Marcus Hand

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Editor, Seatrade Maritime News Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with nearly two decades of experience covering the shipping industry in Asia. In addition to running Seatrade's maritime and offshore news website based from Singapore he is the Asia Editor of Seatrade Maritime Review. Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Prior to joining Seatrade at the beginning of 2010 Marcus worked for shipping industry journal Lloyd's List for a decade and previous to that the Singapore Business Times covering shipping and aviation.

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