Over US$811 billion to be spent on upcoming oil and gas fields by 2025

Conventional gas projects will require US$363.2 billion, while the investments into coal bed methane (CBM) and unconventional gas projects will total US$3.7 billion and US$1.6 billion in upstream capital expenditure by 2025.

Brazil accounts for US$76.7 billion or over 9.5% of US$811 billion of capex for the period of 2018 – 2025. Brazil has 49 announced and planned fields. Among these, top fields in terms of capex for the period are three ultra-deepwater conventional oil fields: Lula Central with US$13.3 billion; Lula Oeste with US$6.5 billion; and Buzios V (Franco) with US$5.6 billion.

The US follows with US$75.0 billion or an approximate 9.3% share in global planned and announced capex over the forecast period. The country has 37 planned and announced fields. Ultra-deepwater Mad Dog Phase 2, shallow-water Smith Bay and onshore Horseshoe are the top three fields with capex for the eight-year period of US$13.4 billion, US$11.1 billion, and US$6.5 billion, respectively. All three are conventional oil developments.

Russia is expected to contribute US$72.6 billion or around 9% to the total capex spending between 2018 – 2025. Russia has 49 planned and announced fields. The top three fields are Sakhalin 3 (Kirinskoye South (Yuzhno-Kirinskoye)) shallow water conventional gas field with capex of US$11.3 billion, Kovyktinskoye conventional gas onshore project with a capex of US$9.0 billion, and Chayandinskoye conventional gas onshore project with US$5.9 billion.

Nigeria, Australia, Canada, Mozambique, Norway, Indonesia, and UK, together have a capex US$298 billion, or about 37% of the total capex spending on upcoming projects globally for the period.

GlobalData expects that over their lifetime, the 615 upcoming oil and gas projects will require US$1705 billion in capex to produce over 88 billion barrels of crude and 877 448 billion ft3 of gas. Globally, upcoming shallow water projects will have the highest total capex at US$497 billion. Onshore projects will require US$453 billion over the lifetime, while ultra-deepwater and deepwater projects carry a total capex of US$429 billion and US$325 billion, respectively.

Many upcoming unconventional oil and gas projects represent new acreage developments within existing or newly acquired positions, and as such are covered under producing projects capital expenditure overview.

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