UAE plans to pump $98 billion in oil

The United Arab Emirates is planning to pump nearly $98 billion into hydrocarbon projects involving expansion of its crude output capacity and development of the gas industry, according to a regional bank report. The investments account for nearly 28 per cent of the total capital of around $353 billion approved by the six-nation Gulf Cooperation Council (GCC) for projects in the oil and gas sector, the UAE-daily (Emirates Business) reported Monday, citing an investment report issued by the Kuwait-based Global Investment House (GIH). It said 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 $20 billion. Another major upcoming project is the ZADCO oilfield development and has an estimated budget of $10 billion, it said. 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 six 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 three million barrels per day within two years and 3.5 million bpd by 2015. The UAE’s current capacity is estimated at 2.7 million bpd while its proven oil deposits are officially put at 98 billion barrels. Saudi Arabia accounts for more than 60 per cent of the GCC’s total hydrocarbon projects, with planned investment of around d $215 billion covering 147 major ventures, GIH said. It said 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 $20 billion. Another major upcoming project is the Jizan Refinery Project that has an estimated budget of nearly $seven billion. "In order to continue to benefit from previous high oil prices, GCC countries are concentrating on expanding their output," GIH said. "As of today total value of planned projects in the regional hydrocarbon sector is estimated at $353 billion despite this optimistic scenario, project postponement and cancellation trend continues to plague the market." (QNA) LY