Middle East Oil and Gas Industry Update: Major Investment and Expansion Plans

Strategic Insights -

The Middle East oil and gas industry is undergoing significant changes with various companies investing heavily in new projects and expanding existing operations. The 270,000 barrels per day (bpd) Mina Abdullah Refinery in Kuwait has announced a scheduled maintenance next month, which will reduce output by 42,500 bpd. Meanwhile, Qatar is concerned about high crude oil prices, but has not yet decided whether to increase production.

Key Takeaways:

  • The Abu Dhabi National Oil Company (ADNOC) plans to invest around USD1bn per year until 2007 in gas infrastructure, with the aim of raising oil production capacity to 3m bpd by 2006.
  • Italian energy giant Eni has secured a USD1.4bn contract to build an LNG train project for Abu Dhabi Gas Industries (ADGI), a subsidiary of ADNOC.
  • Qatar Petroleum (QP) and Maersk Petroleum are investing USD3bn to double production from the Al Shaheen oilfield to 450,000 bpd by 2008, as part of a plan to increase crude oil production capacity from 850,000 to 1m bpd.
  • Kuwait's Mina Abdullah Refinery is undergoing scheduled maintenance next month, which will reduce output by 42,500 bpd.

Statistics:

  • USD1bn per year: The amount ADNOC plans to invest in gas infrastructure until 2007.
  • 3m bpd: The target oil production capacity for ADNOC by 2006.
  • 98bn barrels: The proven UAE oil reserves, accounting for 10% of global reserves.
  • USD1.4bn: The value of the LNG train project contract won by Eni.
  • 38 months: The timeframe for Eni's subsidiary Snamprogetti to complete the LNG train project.

Sources:

  • Dow Jones
  • Reuters
  • AD 2000-4 report
  • Reuters
  • Knight Ridder/Tribune Business News
  • AME Info