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FIDS on Global Upstream Projects set to Double

Up to 25 upstream projects are likely to reach final investment decisions (FID) by the end of 2017 according to latest reports from Wood Mackenzie.

This is compared to just 12 upstream projects reaching FID last year, meaning that 2017 can see an increase of 100%.

Out of the 25 predicted upstream projects, 15 have already witnessed being sanctioned by the developers in the first half of the year.

All together, the projects are estimated to have around 8 billion barrels of oil reserves, with the majority of them in brownfield projects on existing fields, subsea tiebacks or satellite developments.

According to the Wood Mackenzie report, the brownfield expansions are less risky than greenfield projects. They would also need substantially less capital, whilst having the benefit of providing quicker payback and better ROI.

Wood Mackenzie Asia-Pacific upstream research director Angus Rodger said: "These are positive signs that the upstream industry is continuing on the road to recovery and that the more competitive conventional projects are moving down the cost curve sufficiently to attract new investment."

It's been estimated by the research company that by 2024, 19 projects would add up to 1.6 million boe/d of net new production to the oil and gas majors.

However the report also says that national gas oil companies (NOCs) have cut down on their new project investments drastically from 2015, with operations under one bnboe of the 22 bnboe approved commercial reserves.

Source Energy Business Review