Global Upstream Update: our favourite slides and topics – June 2023

Supply chain evolution: costs continue to rise in many sectors, including the floating rig market and LNG construction. Qatar’s North Field South shows that even the lowest cost producers are not immune. Thematic dealmaking: deal activity remains low, but even in areas with ongoing fiscal disruption, like Australia, large strategic deals have been struck. G7 Russian price cap conundrum: with OPEC+ acting to support prices, the G7 will need to review, revamp or reverse its crude oil price cap if realised Russian prices exceed US$60/bbl. Exploration contrasts: Turkey could continue to dominate European results if its recent onshore discoveries are proven up. Frontier exploration in Brazil is going less well, with Petrobras’ Foz do Amazonas plans derailed by regulators. Government interventions: absolute fiscal stability is an unrealistic target, but predictability can always be improved.