UK will dominate the new crude and natural gas projects in the North Sea region by 2025, according to a report from Globaldata.
Out of 36 projects expected to be operational in the region, 25 are in the UK, followed by nine in Norway and two in Denmark, according to the report titled, ‘Production and Capital Expenditure Outlook for Key Planned Upstream Projects in North Sea‘.
GlobalData senior upstream analyst Joseph Gatdula said: "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."
All the planned projects are estimated to produce 819,000 barrels of oil per day (mbd) and 1.1 billion cubic feet of gas per day (bcfd) by 2025, requiring capital expenditure (capex) of $86.5bn. Of this, about $43.4bn is likely to be invested between 2016 and 2025.
Norway, which is planning to earmark $12bn capex for Johan Sverdrup project alone, is expected to lead the region with overall capex of $27.8bn.
GlobalData’s Upstream analyst Matthew Beven said: "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."