GULF HYDROCARBON PROJECTS have topped US$690 billion, says a report by Dubai-based research house Proleads Global. A full 30 per cent of hydrocarbon projects by value have been put on hold or cancelled, it said. The report shows, however, that the GCC countries remain the most active construction markets in the world for the oil, gas and petrochemical industries
with projects budgeted at more than US$690 billion.
Proleads investigated a total of 578 hydrocarbon projects across the GCC countries, and found that 30 per cent by value have been placed on hold or cancelled with a further 30 per cent currently in construction and 40 per cent in the pre-construction phase. Proleads director Emil Rademeyer said GCC countries have been taking a long, hard look at spending in the wake of the global recession, falling demand and the volatility of oil markets with projects rescheduled to take advantage of lower costs or cancelled.
"GCC oil, gas and petrochemical sectors' earnings constitute about 85pc of the region's export revenues. "Demand for hydrocarbons and refined product can also be expected to pick up as the global economy gradually pulls out of recession."
The Proleads Insight report covers projects in the oil and gas production and refining sectors with values greater than US$10mn each in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. The report projects cashflow in the GCC hydrocarbon market to stabilise next year at levels similar to those found in late 2007. "However, the cashflow picture could rapidly deteriorate if projects in the pipeline scheduled to begin construction do not start as planned," said Rademeyer.
