About 620 oil and gas projects are set to come online across the globe in near future as the global oil and gas industry is comfortable with the lower for longer oil price environment, according to GlobalData, a leading data and analytics company
Of these, 267 projects have progressed past the final investment decision, while the remaining are early stage announced projects undergoing commercial feasibility studies, said GlobalData.
Among the globe, Africa’s upcoming oil and gas projects lead with the highest total capital expenditure (capex), with US$380.1bn being attributed to 91 projects. Asia which is in fifth position in terms of total capex for upcoming projects, with a value worth US$169.8bn, is the leading region globally for the number of new projects with 129.
Referring to the global oil and gas projects, Effuah Alleyne, oil and gas analyst at GlobalData, said, “This incongruity in project count versus capex spend is supported on an asset level. Africa has three offshore conventional gas to LNG projects, all in Mozambique, in the top 10 capex spend for planned projects globally accounting for 34 per cent of capex spent in the group. Asia has one project in Indonesia contributing nine per cent of capex spend in the same grouping.”
“Though Asia leads globally in the number of new oil and gas projects, 83 per cent of these are onshore and shallow water with half of those projects in India. This aligns with India’s aggressive efforts to increase domestic oil and gas supply,” Alleyne added.
According to the oil and gas data and analytics company, about 132 new oil and gas projects globally are expected to commence production by the end of 2018. South America leads the groups with 28 projects estimated to commence production in 2018 with an accompanying total capex of US$28.3bn.
More than US$59bn is anticipated to be spent in Africa’s oil and gas sector across 21 onshore and shallow water projects coming online in 2018 and recovering 2,376 mmbbl of oil equivalent of reserves over their lifetime.
