GCC states need $ 100 bn to boost oil and gas output

Nov 07, 2001 01:00 AM

GCC states need to spend nearly $ 100 bn to expand their oil and gas output capacity and meet global demand, Oman's oil minister said. Dr. Mohammed Al Rumhi said the six members control around 45 % of the world's recoverable oil resources and 15 % of the gas wealth.
"It has been estimated the GCC countries need to spend $ 100 bn for the development of their oilfields and gas and refining industries," he told a conference on privatisation in Abu Dhabi. "It is also estimated that the region needs to spend around 4 % of its GDP or nearly $ 10 bn a year over the next 10 years in the power sector to meet rapidly growing demand."

GCC states have been involved in an ambitious programme to develop their oilfields and set up new refining and gas liquefaction projects. The GCC's current oil output capacity is estimated at around 17.5 mm bpd and future expansion could push it to more than 25 mm bpd.
The high costs of such projects have prompted some GCC members to consider re-admitting foreign partners to secure financing and technology. Rumhi said the GCC had been locked in negotiations with the EU, the US and Japan to expand economic and trade cooperation and encourage them to invest.
"Better trade relations will result in facilitating the execution of investment projects," he said. "Recent projects have demonstrated that foreign investors are now comfortable to take GCC country risk."

He also spoke about expansions in Oman's oil and gas sector and reforms to diversify the economy. Oman has completed a 6 mm ton LNG project in the southern port of Sur and is considering raising capacity to more than 9 mm tons. The multi-billion dollar venture is expected to fetch it more than $ 1 bn a year.

Source: GN Online
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