The combined value of the 361 active oil and gas projects in the GCC has crossed $331.4bn as of November 2017, a new report reveals.
According to latest Oil and Gas Construction Analytics report issued by BNC Network, the construction projects of the GCC's oil and gas sector constitutes 2% of all active projects in the region, which account for 14% of the total estimated value.
This reflects relatively high value of average energy projects, compared to other civil engineering and construction projects.
“In the third quarter of 2017, 17 projects with a combined estimated value of $22.05bn were announced in the GCC's oil and gas sector, despite a low-oil price environment where oil price has been hovering around the psychological mark of $50 per barrel,” the latest Oil and Gas Construction Analytics issued by BNC Network shows.
“In the third quarter of 2017, the number of oil and gas projects in the GCC increased by 6% as compared to the second quarter of 2017 and the total estimated value of these projects increased by 5%.”
The Hydrocarbon sector represents 30% of the GCC economy and 60% of the total exports value, the report highlights.
A total of 10 oil and gas projects with a combined estimated value of $5.6bn moved to construction from other stages during the third quarter of 2017, while another 15 projects worth $9.9bn were completed in the same period.
Avin Gidwani, chief executive officer of BNC Network, said: “The renewed optimism in the global economy and a slight increase in demand is reflected in the latest Oil and Gas Construction Analytics issued by BNC Network – with the announcement of 17 new oil and gas projects, worth $22.05bn in the third quarter of 2017 – that pushed up the number of energy projects to 361 with a combined value of a whopping $331.4bn.
“This also reflects that the governments of the Gulf countries are determined to invest more in hydrocarbon projects to increase output and exports of oil and gas products to fuel the global economic growth that is set to accelerate further in the next few years.”
Major projects announced in the third quarter 2017 in the GCC's oil and gas sector include Oman to India Multi-Purpose Pipeline located in Muscat worth $5.6bn, Oman’s New Duqm Refinery worth $3bn and the $3bn Amiral Mixed Feed Cracker, part of Jubail Refinery Complex in Saudi Arabia.
“The growth in oil and gas construction projects will also create new jobs and support the region’s economic growth in the next few years,” Gidwani added.