According to a regional bank report, the UAE is planning to pump nearly USD 98 billion into hydrocarbon projects involving expansion of its crude output capacity and development of the gas industry.
Kuwait based Global Investment House said that the investments account for nearly 28% of the total capital of around USD 353 billion approved by the six nation Gulf Cooperation Council for projects in the oil and gas sector. The UAE investments cover 116 major projects, including the giant
Tacaamol - Al -Gharbia Chemicals Industrial City venture that is currently in planned phase, with an estimated budget of USD 20 billion. Another major upcoming project is the ZADCO oilfield development and has an estimated budget of USD 10 billion.
It gave no other details but the UAE has been locked in a massive expansion program to tap its huge gas resources of more than 6 trillion cubic meters the world's fifth largest after Russia, Iran, Qatar and Saudi Arabia.
The projects also involve boosting the country's crude production capacity to nearly 3 million barrels per day within 2 years and 3.5 million barrel per day by 2015. The UAE's current capacity is estimated at 2.7 million barrel per day while its proven oil deposits are officially put at 98 billion barrels.
GIH said that Saudi Arabia accounts for more than 60% of the GCC's total hydrocarbon projects with planned investment of around d USD 215 billion covering 147 major ventures. The projects are focused heavily on the upstream oil and gas segment including the massive Yanbu Integrated Refinery and Petrochemicals Complex that is currently in the study phase at a cost of USD 20 billion.
Another major upcoming project is the Jizan Refinery Project that has an estimated budget of nearly USD 7 billion. In order to continue to benefit from previous high oil prices, GCC countries are concentrating on expanding their output.
As of today total value of planned projects in the regional hydrocarbon sector is estimated at USD 353 billion despite this optimistic scenario project postponement and cancellation trend continues to plague the market.
(Sourced from Emirates Business 24/7)
