Official estimates showed energy capital investments in the Middle East and North Africa (Mena) could total around US$525 billion during 2012-2016 according to a report by Arab Petroleum Investment Corporation (Apicorp).
A breakdown showed just over two-thirds of the energy capital investment potential continues to be located in the same five countries reviewed previously, namely Saudi Arabia, UAE, Iran, Qatar and Algeria.
Saudi Arabia, the world’s biggest oil exporter, tops the ranking with US$141 billion. The UAE has overtaken Iran as the second biggest investor with nearly US$76 billion worth of energy investment over the next five years.
The report said tighter international sanctions, and the retreat of foreign companies, have ended up taking a toll on Iran’s energy investment, which now stands at a US$58 billion.
Similarly, but for completely different reasons, investment in Qatar has also been on a sharp downtrend. “With the moratorium on further development of the North Field still in place, energy capital requirements have plummeted to US$41 billion,” said Aissaoui,
In Saudi, investment has mostly been generated by Saudi Aramco and SABIC as domestic private investors have continued to struggle to attract capital.
Algeria and state-owned Sonatrach has faced lower investment in energy recovery which has seen the North African country drop down the investment pecking order.
Kuwait has seen investment remain well below potential which seems to be based on political indecision which has parallelised hydrocarbon investment. As a result, major components of the upstream program and key downstream projects such as the giant Al-Zour refinery are still to be decided.
Sector-wise, the study showed the oil value chain accounts for 42 per cent of the Mena investment, the gas value chain for 34 per cent and the remaining 24 per cent represent the oil and gas fuelled power generation sector. But the study said it saw more challenges to the investment scene in the region as the average energy project, which has increased almost three times between 2003 and 2008, has resumed its upward trend after declining significantly in the middle of the global financial crisis.
