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Iran to Dominate Middle East Offshore Capex

01/15/11 Source: Moj News

The Persian Gulf producers Iran and Saudi Arabia will lead offshore investments in the Middle East region over the next few years, according to Infield Systems.

Offshore Middle East and Caspian Sea Oil and Gas Market Report

The study also says Azerbaijan should remain the largest offshore producer of both oil and gas in the Caspian Sea, and also leads the way in capex, with Kazakhstan, Russia, and Turkmenistan each expected to contribute $1.6-2 billion over the forecast period.

Infield's new "Offshore Middle East & Caspian Sea Oil & Gas Market Report to 2015" predicts a 33% increase in offshore capex across the Middle East and Caspian over the next five years compared to 2006-10, up from $29.9 billion to around $39.9billion.

Much of the growth will come from an expected capex increase of $6 billion in Iranian projects to around $12 billion. Infield forecasts capex in Saudi Arabia of $5.8 billion over 2011-2015, up from $4.5 billion during 2006-2010.

The two countries combined should contribute over 44% of total offshore capex in the region between 2011 and 2015. However, capex from Qatar looks set to fall compared with the previous five years due to a moratorium on further development of the North field which could last through 2014.

One of the main drivers for offshore development will be continued strong demand for natural gas in the Persian Gulf region and the broader Middle East.

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