This month Infield Systems looks at offshore capex distribution in the Arctic up to 2018. This challenging frontier region will continue to attract offshore investment despite the high risks and costs associated with Arctic developments. Key operators include ExxonMobil and Gazprom, both of which are projected to account for nearly half of the region's total offshore capex over the period. More than 90% of ExxonMobil's Arctic capex is expected to be focused on projects offshore Canada such as the Hebron and Hibernia developments, with the rest directed toward the Sakhalin 1 project offshore Russia. All of Gazprom's Arctic expenditure will be focused on Russian developments, with its Kamennomysskoye-More gas field in the Obskaya Bay accounting for a large share of its projected Arctic capex. Statoil will become an important player in the region over the next five years with 83% of its projected expenditure focused on projects in Norway. Its Snøhvit development in the Barents Sea is expected to account for a large share of its expenditure.
A large proportion of Arctic capex will be focused on pipelines (47%) and fixed platforms (27%). More than half of the projected pipeline capex is expected to be focused on projects in Russia, with Gazprom's Baydaratskaya Bay project expected to require the highest amount of Russian pipeline capex. In the Barents Sea, the Statoil-operated Snøhvit development is forecast to be another key driver of Arctic pipeline capex due to the development's expansion, which will require additional pipelines. In terms of fixed platforms, all platforms are expected to use gravity foundations in order to withstand permanent ice or ice-prone conditions. ExxonMobil's Hebron GBS is one such example and is expected to account for 45% of the region's fixed platform market capex.
– George Griffiths, Senior Energy Researcher, Infield Systems
