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W-Global Deepwater Production Hits 10 Million BOE - D

Global deepwater production has surpassed 10 million BOE/D for the first time, with projections to exceed 14.5 million BOE/D in the next five years, primarily driven by oil and gas production. Brazil is expected to lead future investments, while the sector is evolving towards ultra-deepwater projects, which are predicted to account for over half of deepwater production by 2023. Despite the high costs and risks, deepwater projects can yield significant returns, with the majority of production now operated by major international companies.

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9 views3 pages

W-Global Deepwater Production Hits 10 Million BOE - D

Global deepwater production has surpassed 10 million BOE/D for the first time, with projections to exceed 14.5 million BOE/D in the next five years, primarily driven by oil and gas production. Brazil is expected to lead future investments, while the sector is evolving towards ultra-deepwater projects, which are predicted to account for over half of deepwater production by 2023. Despite the high costs and risks, deepwater projects can yield significant returns, with the majority of production now operated by major international companies.

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Global Deepwater Production Hits 10 Million BOE/D about:reader?url=https%3A%2F%2F2.zoppoz.workers.dev%3A443%2Fhttps%2Fjpt.spe.org%2Fglobal-deepwater-p...

jpt.spe.org

Global Deepwater Production Hits 10


Million BOE/D
December 29, 2019

3-4 phút

Production from the world’s deepwater fields surpassed 10 million BOE/


D for the first time, according to a new report from Wood Mackenzie. The
energy consultancy group is forecasting that the deepwater sector is on
trajectory to top 14.5 million BOE/D in the next 5 years, a figure to be
driven by both oil and gas production.

“A challenging few years during the downturn forced deepwater to


reinvent itself by cutting costs, cycle times, and break-evens. It has
emerged much stronger and is ready for the next phase of investment—
much of which will be in deeper waters and in new plays and new
countries,” the company said.

Brazil is expected to lead in terms of future investments and production


from the Santos Basin. Newcomers set to move the needle include
Mozambique, Israel, Egypt, and Guyana.

Wood Mackenzie notes in the report that while expensive and long-
cycle, deepwater projects “can be highly rewarding for those willing to
take on the risks.” A typical deepwater project delivers an average return
of 23%, but the consultancy adds that there is a wide spectrum of
outcomes. One in five assets returns just 15%.

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Global Deepwater Production Hits 10 Million BOE/D about:reader?url=https%3A%2F%2F2.zoppoz.workers.dev%3A443%2Fhttps%2Fjpt.spe.org%2Fglobal-deepwater-p...

Smaller oil projects, including subsea tiebacks to existing production


platforms, have proven to be the best deepwater investments while new
gas projects have “systematically lower returns.” In the past decade,
deepwater gas has accounted for 58% of the new volumes discovered—
less than half of which is considered commercially viable. Wood
Mackenzie expects this trend to continue despite the large number of
major gas discoveries that remain on hold due to low prices and high
development costs.

Deepwater Evolving

To expand its production profile, the deepwater sector is increasingly


becoming the ultra-deepwater sector. Wood Mackenzie points out that in
2000 most deepwater projects involved depths of around 2,000-2,600 ft.
Ultra-deepwater projects of about 5,000 ft or deeper are now outpacing
these shallower projects.

The firm estimates that by 2023, ultra-deepwater will represent more

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Global Deepwater Production Hits 10 Million BOE/D about:reader?url=https%3A%2F%2F2.zoppoz.workers.dev%3A443%2Fhttps%2Fjpt.spe.org%2Fglobal-deepwater-p...

than half of all deepwater production, with most of the new supplies
sourced from offshore Brazil, Guyana, and the US Gulf of Mexico. The
Santos basin in Brazil and the Stabroek block in Guyana are projected to
add over 2.5 million B /D of oil production by 2025.

Deeper projects in more complex reservoirs will bolster output from the
US Gulf of Mexico while the once-hot fields offshore west Africa are set
to decline by as much as 400,000 BOE/D by 2025.

The increasing depths and technical challenges have mean that much of
the industry is excluded from deepwater exploration. Today, more than
75% of deepwater production is operated by the international majors
plus Petrobras. These eight companies represent 23 of the largest 25
deepwater assets.

3 trong 3 11:30 SA 07/04/2025

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