Postponed spending this year, from $190 billion to £53 billion, will lead to final investment decisions (FIDs) doubling next year and exceeding pre-pandemic levels fom 2022, according to research from Rystad Energy.
Postponed spending this year, from $190 billion to £53 billion, will lead to final investment decisions (FIDs) doubling next year and exceeding pre-pandemic levels fom 2022, according to research from Rystad Energy.
Offshore commitments are now expected to reach $34 billion in 2020, down from $101 billion in 2019. Onshore sanctioning is likely to fall to $19 billion this year from $89 billion last year.
Rystad Energy estimates total sanctioning to bounce back to around $100 billion in 2021, primarily supported by $64 billion spending on offshore projects. Although lagging onshore projects are projected to only account for $36 billion in 2021, there will be a steep rise in 2022 to around $100 billion, topping the expected $95 billion worth of offshore commitments that year.
Offshore sanctioning of $34 billion this year will include the $2.5 billion Mero-3 sanctioning in Brazil and commitments worth $3.6 billion on the Payara development offshore Guyana in 2020. Meanwhile Gazprom Neft has started development of its $1.3 billion Chayandinskoye oil-rim development in Russia and Norway has approved the $2 billion plan for development and operation (PDO) of the Balder Future project.
