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Oil and gas projects dominate construction activity in GCC
December 30, 2017, 7:21 pm
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The latest Oil and Gas Construction Analytics report by BNC Network, has found that the combined value of the 361 active oil and gas projects in the six-nation Gulf Cooperation Council (GCC) bloc exceeded US$331 billion in November 2017.

The total value of construction projects in the hydrocarbon sector — which represents 30 percent of the GCC economy and 60 percent of the total exports value — constituted 2 percent of all active projects in the region and accounted for 14 percent of total estimated value.

“In the third quarter of 2017, there were 17 projects with a combined estimated value of $22.05 billion announced in the GCC’s oil and gas sector,” said BNC, which specializes in analyzing countries and industries in the Middle-East from a construction perspective.

The construction update comes at a time when the average oil price has recovered to $51.82 per barrel year-to-date in 2017, from the 13-year lowest average price per barrel of $42.55 in 2016; but this is less than half of the $111.63 per barrel recorded in 2012.

The report added that the number of oil and gas projects in the GCC increased by 6 percent in Q3 compared to the previous quarter while the total estimated value of these projects increased by 5 percent.

A total of 10 oil and gas projects with a combined estimated value of $5.6 billion moved to construction from other stages during the third quarter of 2017.

Meanwhile, a total of 15 oil and gas projects with a combined estimated value of $9.9 billion were completed during the third quarter of 2017. The largest contract awarded in the third quarter was phase 1 of Duqm Refinery and Petrochemical Complex located in Oman worth $2.75 billion, the report noted.

Avin Gidwani, CEO of BNC Network, said: “The renewed optimism in the global economy and a slight increase in demand are reflected in the latest analytics by BNC Network.

This also reflects that GCC governments are determined to invest more in hydrocarbon projects to increase output and exports of oil and gas products to fuel the global economic growth that is set to accelerate further in the next few years.

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