BP, Eni and Shell are Best-in-class Amongst the Majors
Wednesday 25 July 2018
Investors should feel confident about BP’s, Eni’s and Shell’s increased wave of new project approvals during the recent downturn. A Rystad Energy review of the performance of their recent projects against those of other operators shows that the three European oil giants have outperformed their peers.
For projects that have started up since 2014, majors have collectively achieved greenfield costs of $13.50 per barrel of oil equivalent. These development costs were in addition to their collective $8.80 per barrel of oil equivalent lifting costs from 2017. The below analysis allocates 100% of a project’s cost to the operator who is executing the project (i.e. does not split to equity shares).
Collectively, majors are on pace to approve over $37 billion in projects during the calendar year. Over 30% ($12 billion) of those were approved during the second quarter.