Exxon’s Uaru project to be among key early 2023 offshore sanctions, says Westwood Energy

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Westwood Global Energy Group said the key projects anticipated to be sanctioned in the first half of 2023 include Eni’s Baleine Phase II development (Ivory Coast), Petrobras’ Sergipe-Alagoas (Brazil), ExxonMobil’s Uaru (Guyana), Mellitah’s Structure A & E (Libya) and Qatar Energy’s North Field South expansion project.

The analyst forecasts investments of US$70 billion in offshore oil and gas related EPC (engineering, procurement, construction) for the remainder of 2023, in its offshore field development update for March 2023. This, it said, is driven by c.250 subsea trees, c.5,000km of subsea umbilicals, risers and flowlines (SURF), c.6,600km of pipelines, c.230 fixed platforms and 17 floating production and storage (FPS) units. 

These will come on top of an estimated US$7 billion (excluding letters of intent), of which contracting activities in the last month have been driven by the Azule Energy-operated Agogo development offshore Angola.

Westwood said a prevailing high inflation environment continues to impact field development timelines as BW’s final investment decision (FID) on its Maromba field is subject to further cost optimisation. TotalEnergies has also revealed concerns about the cost of its Cameia-Golfinho project; FID is expected in 2023. 

Exxon’s Uaru project also faced cost inflation. Uaru is estimated to cost US$12.7 billion. It will be the fifth development offshore Guyana and will add 250,000 barrels per day (b/d) to crude oil production in the Stabroek Block. Uaru is expected to come on stream in 2026. The project development plan is currently under review by Bayphase.


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