08 July 2018, Sweetcrude, Lagos — Projects planned by nations in the Organisation of the Petroleum Exporting Countries, OPEC, have been estimated at a total of $12 billion by 2021.
The amount is for just 12 upstream projects as against $40 billion spent on 35 projects in 2017.
Statistics obtained from the group showed that on top of the huge capacity maintenance costs faced by OPEC member countries, they continue to invest in new projects and reinforce their commitment to the oil and gas market as well as to the security of supply for all consumers, else the number of projects will drop by 2021.
It is a reflection of OPEC’s well-known policy that is clearly stated in its Long-Term Strategy and its Statute.
In the medium-term, about 160 projects, with an overall estimated cost of some $156 billion, are being undertaken by the group.
A breakdown showed that in 2017, the OPEC countries spent a total of $40 billion on 35 projects, however, investments slide in 2018 with $35 billion to be spent on 30 projects.
In 2019, the members plan to invest $30 billion on 25 projects, and in 2020, $37 billion will be spent on about 32 upstream projects, with upstream investments dropping to the lowest in 2021: just $12 billion will be spent on 12 upstream projects.
On the flip side, the upcoming projects landscape for the medium-term (2016–2021) for OPEC member countries’ downstream sector is affected by two factors: the lifting of international sanctions on Iran, and the return of Gabon to the organisation: apparently the budget was planned before the current imposition of sanction on Iran by the United States.
The group plans an almost 8 million barrels per day, mb/d, of potential refining projects in OPEC member countries with a relatively new surge in capacity additions from Iran, if all projects are implemented as planned.
However, a review of viability of these projects suggests that around 2.2 mb/d of distillation units will be added to the refining sector in the countries in the period 2016–2021.