Better project delivery: upstream’s value opportunity Report

Insight 09 July 2018

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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

Report summary

Has the industry seen the light on project delivery? Signs of improved execution suggest upstream companies are finally getting it right after a lengthy period of dismal returns on new investments. This insight – the latest in our series of thought leadership reports – examines the following: * Why project delivery has been so poor in the past, and the associated financial damage. * What has changed through the downturn, and the key reasons behind better execution. * Whether these signs of improved execution can be maintained.

Executive summary
How bad was it really?
Spreading the pain around
What went wrong in Australia?
The financial cost of poor execution
Turning the ship around
A golden opportunity for stellar returns
But can it last?
The five ingredients for success
Appendix (1)
- Company case study: Eni
Appendix (2)
- For further details of Wood Mackenzie's Project Benchmarking capabilities please contact:
- Renaud Brimont Head of Consulting EMEARC renaud.brimont@woodmac.com
- or
- Piers Moffatt Principal, Upstream Consulting piers.moffatt@woodmac.com

Tables and charts

This report includes 9 images and tables including:

Project delay (%) by type, 2006-2016 sanctions
Capex range (%) by type, 2006-2016 sanctions
IRR of projects by year of sanction at FID versus now (%), weighted average

Range of project delays (%) by sanction date
Capex range (%) by project sanction date
How major projects got quicker: from FID to start-up and payback, by year of sanction
Price impact on pre-FID and under dev. IRR
IRR impact on pre-FID projects by varying capex
LNG projects by year of sanction and location, with company targets for future sanctions (non-US)