Rystad: Half of offshore cost reductions come from downsizing, simplifications

Offshore developments have experienced lower breakeven prices over the last 2 years with more than half of the cost reductions achieved through downsizing, simplification, and design, said Rystad Energy.

Engineers have reassessed their design approach to make project development and the budget process more predictable, said Rystad analysts.

Operators and service companies have worked together to lower costs. High-grading of rigs, vessels, equipment, and labor also yielded breakeven improvements as did the renegotiation of rig and maintenance contracts.

Audun Martinsen, Rystad vice-president of oil field research, said, “By focusing on the areas with the highest potential within their portfolios, exploration and production companies naturally gained the most from these newfound efficiencies by high-grading their undeveloped fields.”

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...