$123 billion of offshore projects could be sanctioned in 2019 if Brent rebounds to $60 per barrel and further cost reduction efforts are successful on current non-economic projects up for sanctioning.

That’s according to Rystad Energy, an independent energy research and business intelligence company, which told Rigzone on Friday that its current Brent forecast for this year is $65 per barrel.

“With a rebound to $60 per barrel Brent, 2019’s offshore project sanctioning has the potential to reach its highest level of activity since 2013,” Rystad said in a statement posted recently on its website.

“The Middle East will have the most shallow water projects up for commitment decisions during the year. Moving into deeper waters, South America will surely take the global stage. The continent looks to review the largest deepwater plays during 2019,” Rystad added.

Fifteen percent of the potential $123 billion to be committed in 2019 have breakeven prices over $60 per barrel, according to Rystad, which revealed that of those, the vast majority are for new fixed and floating facilities.

“For 2019 to reach its full offshore sanctioning potential, further cost reduction efforts on these projects are needed,” Rystad stated.

In a statement sent to Rigzone on December 18, Rystad said the outlook for offshore oilfield service contractors is strong.

In the statement, Rystad revealed that more than 100 new offshore projects are aiming for 2019 sanctions and that an expected $210 billion will be spent on offshore oilfield services globally next year.

Oil and gas operators gave the green light to 90-plus offshore projects in 2018, 62 in 2017 and 43 in 2016, Rystad highlighted in the statement.