Investor Presentaiton
6B00
OFFSHORE
140
120
Deepwater is Competitive
Oil Projects Cost Curve¹
100
Traditional
Break-even Price
(bbl/US$)
៩
Average Brent Break-even Price
(US$/bbl)
60
55
0
5,000
10,000
Deepwater
Shale
15,000
Cumulative Peak Oil Production (kboe/d)
Project Economics
50
Shale²
45
40
35
FAST WARD
Deepwater
30
2
4
6
8
10
Average Payback Time (years)
US$100 billion Greenfield cost³
Source: Goldman Sachs, Rystad Energy, BofAML
(1) Goldman Sachs Top Projects 2018 cost curve by win zone (prospective projects)
(2) Top five shale plays used as representative example
(3) Size of bubble corresponds to greenfield Capex expected to be sanctioned in 2018
© SBM Offshore 2018. All rights reserved. www.sbmoffshore.com
Deepwater continues to gain.
competiveness
>50% Deepwater projects
more competitive than shale
Traditional Deepwater longer
cycle
Deepwater cycle
time is key
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