Rystad Energy is forecasting that overall global upstream investments in 2020 will decrease by around 4%. Investments in shale/tight oil are expected to contract the most next year by almost 12%.
Rystad Energy believes that the lower oil price and weaker cash flows will force shale companies to reduce activity.
Deepwater is the only segment expected to grow above 5% next year, spelling a boom for the industry.
On a regional level, Rystad Energy said only Africa, Russia and South America are expected to see growth or flat development in investments next year, with key players like Mozambique, Libya and Mauritania pushing the largest continent’s growth to the highest worldwide at 11%.
“Unsurprisingly Brazil, thanks to the Marlim and Mero projects, will likely prop South America up to a predicted almost 6% of growth next year. Investments in the Middle East and Australia are also expected to grow on the back of new LNG projects and the redevelopment of old oil fields,” Rystad Energy said.
The 220,000 barrels per day Payara Development Project in Guyana is also expected to be sanctioned early next year.
The Payara FPSO – to be named Prosperity – will be a VLCC (Very Large Crude Carrier) size floating facility with double hull protection, with approximate dimensions of 340m long by 60m wide by 33m deep (1,115 ft long by 197 ft wide by 108 ft deep).
By the time production begins at Payara, the Prosperity will join its sister ships – Liza Destiny and Unity which would already be producing oil offshore the South American country.
