Why Are Offshore
Assets Attractive?
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large offshore assets offer more significant opportunities for redevelopment
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complex geology lends itself to finding additional reserves
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reserves de-risked over time in many cases without additional CAPEX
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offshore crude oil-centric assets typically have
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lower decline rates
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substantial rates of cash flow from operations
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revenues unaffected by local market forces
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the worldwide playing field opens up opportunities to acquire under-valued, under-
exploited assets of major oil companies
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shortage of offshore capable players due to industry/capital shift to onshore shale
plays -
higher cost of entry requirements - operational excellence, financial strength
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existing asset teams lack resources of capital and/or are stuck in “harvest” mode
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the US Outer Continental Shelf (OCS) provides a stable business environment for investment
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predictable legal, regulatory and fiscal framework
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world-class infrastructure coupled with abundant service providers
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highly competitive market without dominant players
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highly attractive drilling economics with developments looking for capital partners
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a decade of capital concentration in onshore shale has left many conventional offshore assets under-invested, creating acquisition opportunities for teams with the operational expertise to unlock their remaining value
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the shale sector’s credit cycle demonstrated that unconventional plays carry meaningful geologic and financial risk, reinforcing the value of conventional offshore assets with proven reservoirs and long production histories
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global energy demand projections confirm that crude oil will remain essential to the supply mix for
decades, supporting long-duration investment in quality offshore producing assets