Gulf oil producers dust off costlier projects
The market upswing is driving investment in untapped reserves and field redevelopments previously considered commercially unviable
Oil price booms typically spur investment in reserves with challenging economics. And the current boom is proving no different, despite intensified global decarbonisation pressures. The Mideast Gulf’s leading producers, Saudi Arabia and the UAE, resumed spending on key development projects almost as soon as the recovery took hold early last year. Now with prices at eight-year highs and showing scant prospect of receding soon, the region’s smaller players are also investing anew while mothballed schemes with relatively high breakeven costs are back on the agenda. In March, state-owned QatarEnergy (QE) awarded a contract to Netherlands-based Fugro to “de-risk” the long-delayed redevelopment of
![](/images/white-fade.png)
Also in this section
26 July 2024
Oil majors play it safe amid unfavourable terms in latest oil and gas licensing bid rounds allowing Chinese low-ball moves
25 July 2024
Despite huge efforts by India’s government to accelerate crude production, India’s dependency shows no sign of easing
24 July 2024
Diesel and jet fuel supplies face a timebomb in just four years, and even gasoline may not be immune
23 July 2024
Rosneft’s Arctic megaproject is happening despite sanctions, a lack of foreign investment and OPEC+ restrictions. But it will take a long time for its colossal potential to be realised