Countries and companies in the Middle East and North Africa (MENA) are set to spend US$755B on energy projects over the next four years, according to a new report. The Arab Petroleum Investments Corporation (APICORP) said its forecast was only slightly down on its 2014-2018 prediction that US$760B would be spent on projects.
The economic commentary said 31% of the total will be spent on oil projects, while 27% will be used for gas programs. The remaining investment will be pushed towards power generation, as MENA states struggle to keep up with demand for electricity. Unsurprisingly, Saudi Arabia will invest the most money in energy projects over the last four years, with the Kingdom set to outlay around US$127B. However, this represents a fall from previous estimates, in part caused by the completion of a number of existing projects in the country, and the drive by Saudi Aramco to cut capital costs by 20%. The United Arab Emirates will also spend significant funds on projects, with US$116B to be spent. Iraq and Iran are predicted to spend US$80B and US$70B respectively on energy projects.
The news comes despite a round of job cuts announced by US-based oil and gas services giant Halliburton. The company on Wednesday announced that it was to slash 6400 staff in a round of job cuts but didn’t announce where those cuts would be made.