$300B Investments in Arab Gulf to Up Oil Output to 10M B/D

BEIRUT (Zawya Dow Jones via Dow Jones Newswires), September 8, 2008

Current investments worth $300 billion in the oil exploration and production sectors of the Gulf countries are expected to boost these countries' production capacity by 10 million barrels a day by 2015, Jeddah-based Okaz daily reported Monday.

More than half of this additional capacity will come from Saudi Arabia, the paper reported citing research firm Proleads.

Saudi Arabia has the fifth of the global confirmed oil reserves and the lowest production cost and it is taking strong investment initiatives in the energy sector, the report said according to the paper.

If the projects currently underway in the Gulf countries are successful in reaching their targeted production, these countries will produce approximately half of the global additional output by 2015, the Proleads report added.

Copyright (c) 2008 Dow Jones & Company, Inc.