Rystad Energy said that up to USD240 billion of greenfield oil and gas investments could be sanctioned in 2019, with almost 25 percent of this coming from the Middle East region.
“The industry in the Middle East is aiming to ramp up gas production in order to meet rising regional demand, while also increasing oil output,” said Rystad Energy senior analyst, Aditya Saraswat.
“Notably, investments in gas developments are picking up significantly. Gas development projects in Qatar and the UAE account for almost a third of the resources expected to be sanctioned next year, while Saudi Arabia’s oil expansion projects at Berri, Marian and Zuluf account for more than half,” Saraswat added.
Qatar plans to boost its LNG capacity to 110 million tonnes per annum (tpa) and solidify its position as the top LNG producer globally. Rystad Energy estimates that some USD35 billion of investment will be needed to achieve this target.
The UAE is prioritising offshore gas projects to increase availability for domestic consumption and reduce its dependence on imported gas and LNG.
Saudi Arabia will develop around 9.8 billion barrels of oil equivalents (boe) of additional resources by investing just over USD24.5 billion at the Marjan, Berri and Zuluf oil fields, according to Rystad Energy.
This article is taken from the Capital Projects and Contracts newsletter.