Sept. 30 (Bloomberg) -- Middle Eastern and North African oil producing countries will invest $525 billion on energy projects from next year to 2016, according to an inter- governmental Arab energy lender.
Nations such as Saudi Arabia, the United Arab Emirates, Iran and Algeria have increased spending on energy projects for the next five years as current high oil prices are allowing them to resume projects that were delayed because of to the financial crisis, the Arab Petroleum Investments Corp. said today in its revised annual review of the MENA region energy investments.
Saudi Arabia will top the list with committed investments of $141 billion, followed by the U.A.E. that is planning to invest $76 billion in that period, the lender known as Apicorp said in the e-mailed report. Countries in the region can finance the projects on their own as long as the basket of OPEC crudes stays at more than $90 a barrel, it said. It was at $103.11 yesterday, according to data compiled by Bloomberg.
In Saudi Arabia, “investment has mostly been generated by Saudi Arabian Oil Co. and Saudi Basic Industries Corp. as domestic private investors have continued to struggle to attract capital,” the energy investment unit of the Organization of Arab Petroleum Exporting Countries said.
Iran, the second-largest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, has committed $58 billion, Apicorp said. “Tighter international sanctions and the retreat of foreign companies have ended up taking a toll on Iran’s energy investments,” it said.
The review is project based and includes plans in the oil, gas, petrochemicals and power sectors that are likely to reach a final investment decision. The bank selected the developments from 220 planned and announced public and private projects in the region.
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