The approximately $471.7 billion worth of oil, gas and petrochemical projects planned across the Middle East and North Africa (MENA) creates abundant opportunities for companies operating in these sectors, especially at this time when the world’s attention shifts away from the centuries-old dependence on fossil fuels.
The MEED magazine reported the global energy transition for oil producers in the MENA region represents a fundamental change in their business model, as the attitudes of their customers are changing, and so must they, too.
In response to these changes, the region’s leading national oil companies are introducing new policies and investments that keep them at the forefront of the global energy sector.
The focus of policies, MEED says, is on diversifying investments in new technologies and clean fuels, preserving their hydrocarbon reserves, and reducing greenhouse gas emissions through technology.
At the same time, shift is seen from traditional clients in the West towards new markets in China, India and Southeast Asia, and as a result, acquiring new clients, suppliers and financiers to the oil and gas sector in the region.
But even with such drastic changes taking place, oil and gas producers know that hydrocarbons will remain the world’s largest energy source for decades to come even after oil demand growth slows.
They also know that lower production costs are a major competitive advantage, and therefore they are intensifying their investments to expand production capacity in the production, refining and distribution sectors.
While the levels of contract awards related to the hydrocarbon sector slowed sharply in 2020 due to the Corona epidemic, 2021 saw a recovery in spending as $29.5 billion worth of contracts for oil, gas and petrochemical projects were awarded in the region in the first seven months of 2021, an increase of 24% of the value of contracts awarded in all of 2020.