The total value of planned petroleum projects in the Gulf region is estimated at $ 659.1 billion as of July of the current year, a report filed by Kuwait Financial Center (Markaz) read. According to the report, this represents an effective decrease of about $ 6.9 billion since the last month. The number of major petroleum projects planned over the next decade stood at 651, an increase of nine projects over the month.
In terms of the number of planned petroleum sector projects, Saudi Arabia is leading; whereas in terms of cumulative value Iran continues to lead.
On a month-on-month basis, projects in the United Arab Emirates witnessed the highest decrease of around $ 10.6 billion, attributed to the upstream oil and gas sector, whereas projects in Saudi Arabia witnessed an increase of around $ 3 billion, the report said.
From a segment perspective, the value of total refining projects declined by $ 400 million, whereas the total upstream oil and gas projects decreased by $ 6.5 billion. The value of regional petrochemical projects witnessed minimal changes on a month-on-month basis.
A review of the timing of the upcoming petroleum sector projects indicates that a large proportion of the projects continues to have a short-term horizon. During the month, the mix of timing of projects has changed slightly; six projects were added to the short-term horizon category, whereas four projects were added to the long-term horizon. The value of medium-term horizon projects decreased by about $ 7.8 billion, whereas the value of those with a short-term horizon increased by about $ 2 billion, according to the report.
The number of canceled or on-hold projects in the upstream oil and gas segment decreased by two projects, whereas their total value declined by $ 800 million over the month.
Upstream oil and gas projects continue to be most affected in terms of cancellations or being placed on-hold, the report said.
Saudi Arabia, which remains the focal point, currently has approximately 159 projects upcoming in the petroleum sector, with an estimated cumulative value of $ 130.7 billion. These projects are heavily focused on the petrochemicals segment, the report said.