OPEC countries to invest more than 120 upstream projects

Emirates Business reported that more than 120 upstream projects worth USD 120 billion will be taken up in OPEC countries in the next 5 years.

As per report, members of the Organization of Oil Producing and Exporting Countries will not leave their plans for upstream capacity expansion in the wake of sober oil demand projections. Data available from OPEC World Oil Outlook for 2009 states that 120 projects worth USD 120 billion will be taken up in OPEC countries in the next 5 years.

Dubai based analysts said that even though major oil companies in the region may continue with their expansion projects they may not actually extract oil from wells now.

Mr Dheeraj Shahdadpuri a DIFC based oil analyst said that the companies may decide to wait for the next 3 to 5 months before the demand for oil picks up to a commendable extent. There may be projects where even though every other activity related to the project may be carried out the actual oil drilling may not begin."

OPEC said that the oil and gas projects are in addition to infrastructure projects currently on in the region. These projects are in addition to all energy infrastructure projects, such as pipelines export terminals and downstream expansion schemes. Most of these projects spreading from countries like Angola and Algeria to Saudi Arabia are expected to be financed by the respective governments.

(Sourced from http://www.steelguru.com)

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