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Deep-sea oil projects make up most of $200 bln deferrals -Wood Mac

Published 2015-07-27, 06:10 a/m
© Reuters. Deep-sea oil projects make up most of $200 bln deferrals -Wood Mac

LONDON, July 27 (Reuters) - Oil and gas projects in deep
basins account for most of deferred investments worth more than
$200 billion made due to the oil price crash, analysts at
consultancy Wood Mackenzie said in a report.
Oil and gas majors have slashed capital expenditure budgets
between 10-15 percent this year in response to oil prices
halving over the past year.
A large chunk of these cost savings have been made by
deferring investment decisions in expensive projects, shelving
more than $200 billion worth of investments, the analysts said.
Estimates by rival consultancies have varied between
$150-$200 billion. ID:nL5N0Z22WR
"By year-end we may be able to count the number of major
upstream projects that made FID (final investment
decision)during 2015 on one hand," they said, identifying 45
major project deferrals across the globe.
As much as 10.6 billion barrels of oil equivalent in
resources located in deep or ultra-deep oil and gas projects are
affected by the delays, showing projects in frontier areas are
worst hit.
Canada's oil sands projects make the country most vulnerable
to project deferrals, with 5.6 billion barrels of liquid
reserves at risk in the country, Wood Mackenzie said.

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