Amman: The Arab Investment and Export Credit Guarantee Corporation (Dhaman) has reported that the oil and gas sector in Arab countries attracted 610 projects, implemented by 356 foreign and Arab companies, with a total investment cost of $406 billion between December 2003 and May of this year.
In its inaugural sectoral report on oil and gas in Arab countries for 2024, launched Wednesday from its headquarters in Kuwait City, the corporation highlighted that the United States led the way as the primary investor with 85 projects, accounting for about 14 percent of the total. Russia, however, led in terms of investment value, with $62.61 billion, representing approximately 15.2 percent of the total, according to the database of foreign direct investment projects worldwide.
The report focuses on four main areas: forecasts for oil and gas production and exports until 2030, foreign projects, and assessment of investment risks and business opportunities in the sector. It noted that foreign direct investment project
s in the oil and gas sector (2003-2024) were predominantly concentrated in the UAE, Egypt, Iraq, Saudi Arabia, and Qatar. These five countries accounted for about 63.8 percent of the projects, totaling 389 projects, 71 percent of the investment cost ($288 billion), and 63.2 percent of the new jobs, amounting to 79,200 positions.
The top ten companies executed about 18 percent of the new projects, 43.5 percent of the capital costs, and 34.8 percent of the total new jobs. The Russian Rosatom Group topped the list in investment costs with $30 billion, representing 7.4 percent of the total, while the Dutch Royal Dutch Shell and Emirati Dana Gas Group were the largest project founders, each with 14 projects, representing 2.3 percent.
Regarding investment risks and incentives in the Arab oil and gas sector, Fitch Ratings for 2024 measured these based on four main indicators: (state) and (industry) risk and incentive indicators in the exploration and production phase, and (state) and (industry) risk and incentive
indicators in the refining phase. The UAE, Saudi Arabia, Qatar, Iraq, Egypt, Kuwait, and Oman ranked as the best Arab countries in terms of the lowest risks and highest incentives. They were followed by Algeria, Bahrain, Mauritania, Libya, Tunisia, Sudan, and Yemen.
According to Fitch’s forecasts, proven oil reserves in the Arab region are expected to decline to 704 billion barrels in 2024, representing about 41.3 percent of the global total, with a further decline of 7 percent to about 655 billion barrels by 2030. Proven reserves of natural gas in the Arab region are projected to reach about 58 trillion cubic meters, representing 26.8 percent of the global total, with a decrease of 7.5 percent to 53.53 trillion cubic meters by 2030.
In terms of production, Arab countries are expected to increase their production of crude oil, compressed gas, and other liquids by 6.4 percent to 28.7 million barrels per day in 2024, reaching approximately 33 million barrels per day by 2030. Crude oil refining capacity is ant
icipated to rise to 11.3 million barrels per day this year, holding a 10.7 percent share of the global total, and is expected to reach 11.4 million barrels per day by 2030, supported by increased refining capacity in Iraq and the UAE.
Net Arab exports of hydrocarbon products are forecast to reach about 23.5 million barrels of oil equivalent per day this year, with expectations of an increase to 27 million barrels of oil equivalent per day by 2030, driven by growth in four Gulf countries, Iraq, and Libya.
The Arab Investment and Export Credit Guarantee Corporation “Dhaman” is a joint Arab body owned by Arab countries and four Arab financial institutions. Established in 1974 and headquartered in Kuwait, it holds an A+ rating with a stable outlook from SandP and is the world’s first multilateral investment insurance body.
Source: Jordan News Agency