Funding needed for energy projects in the Middle East is estimated at 700 billion dollars over the next 10 years : Saudi Minister of Petroleum

RIYADH, 19th November, 2015 (WAM) -- Minister of Petroleum and Mineral Resources of Saudi Arabia, Ali bin Ibrahim Al-Naimi has said that funding needed for energy projects in the Middle East is estimated at 700 billion dollars over the next 10 years.

He also said that with its huge discovered and undiscovered reserves, the Arab world is a major player in global oil production and consumption.

"Arab countries need to invest in the various stages of the oil industry, especially since these countries, whether oil-producing or non-oil-producing, are all in need of energy sources to fuel the continued economic growth and provide the basic needs of life," he told this while speaking at a seminar on Future of Energy in the Middle East and North Africa organized by Arab Petroleum Investments Corporation, APICORP, in Manama, Bahrain.

The Arab world consumes about nine million barrels of oil per day, almost 10% of the total global consumption, since the Arab world has more than 56% of the world's proven oil reserves and more than 27% of the world's natural gas reserves. These reserves are expected to rise over the coming years with new discoveries and improved technologies that help increase recoverable oil volumes, he added.

"As you know, the economies of all Arab countries, including non-oil-producing countries, are closely interconnected in various areas such as trade, investment, tourism, and the movement of labor, which means that these economies are correlated to oil and gas production and price levels. This correlation is expected to continue for several decades, bringing into focus the importance of the development, as well as the vertical and horizontal expansion, of the oil industry, including the continuation of new oil discoveries. This requires the development of appropriate financing solutions that would maintain and raise the level of production and increase oil reserves," Al-Naimi was quoted by the Saudi Press Agency as telling the audience.

The Arab Petroleum Investments Corporation (APICORP) was established in the early 1970 to support the financing solution system backing the development of the Arab energy sector. As an Arab entity that supports this vital sector, APICORP started operation in 1975 by providing various financing solutions to the sector investors.

The Saudi minister said that during the last forty years, APICORP actively served the Arab energy sector by funding and equity financing a large number of distinctive energy projects, especially the Arab joint ventures of OAPEC member states, in addition to the provision of financial advisory services and energy research, and the active participation in, and full support of, the energy value chain.

"The fact that the funding needed for energy projects in the Middle East is estimated at 700 billion dollars over the next 10 years shows how important it is to provide adequate funding for such projects.

"In terms of financial results, the company assets grew from 2.1 to 5.88 billion dollars, at a 180 percent growth rate, over the past 10 years."The minister said that APICORP continues to pursue a number of initiatives. Last year, for example, in a 500 million dollar acquisition, APICORP acquired a 28.3 percent stake in the National Petroleum Services Company (NAPESCO), one of the largest oil and gas field service companies in the Middle East, North Africa, and Southeast Asia. APICORP also initiated a deal in the power sector with ACWA Power, a leading power generation and water desalination company in the Middle East.