New in­vest­ment mod­els needed to boost MENA oil & gas com­pet­i­tive­ness

Oil and Gas - - REGIONAL NEWS -

New in­vest­ment mod­els will en­cour­age op­ti­mal de­vel­op­ment in the oil and gas sec­tor, Ma­jid Ja­far, CEO of Cres­cent Pe­tro­leum told OPEC min­is­ters and in­dus­try lead­ers at the OPEC Sem­i­nar in Vi­enna re­cently. The pri­vate sec­tor in MENA can be an im­por­tant part­ner in oil and gas de­vel­op­ment, help­ing boost com­pet­i­tive­ness in the in­dus­try, he added.

“We need new in­vest­ment mod­els that will cre­ate the right in­cen­tives for up­stream in­vest­ment in ex­plo­ration in new ar­eas, en­hanced re­cov­ery from ma­ture fields, and gas de­vel­op­ment, where the re­gion con­tin­ues to lag de­spite grow­ing de­mand from the re­gional power and in­dus­try,” Ja­far said.

Ja­far, who leads the Mid­dle East’s old­est pri­vate oil and gas com­pany and serves as Vice-Chair­man of the Cres­cent Group of com­pa­nies, was speak­ing at the 7th OPEC In­ter­na­tional Sem­i­nar in Vi­enna, Aus­tria. More than 750 par­tic­i­pants, in­clud­ing min­is­ters, in­dus­try lead­ers and ex­perts gath­ered at the Im­pe­rial Hof­burg Palace in Vi­enna to dis­cuss the global en­ergy out­look, mar­ket sta­bil­ity, oil in­vest­ments, tech­nol­ogy, and the state of the world econ­omy.

“The re­gion needs at least $320 bil­lion in in­vest­ment over the next five years, and the pri­vate sec­tor can be an im­por­tant part­ner in this ef­fort. The Mid­dle East has over half the world’s proven oil & gas re­serves but rep­re­sents only a third of the oil mar­ket and a sixth of the gas mar­ket to­day, so we have yet to ful­fill our po­ten­tial as a re­gion,” Ja­far said, speak­ing on the panel en­ti­tled “In­vest­ment in the Oil In­dus­try”, along with the oil min­is­ters of Iraq and Kuwait, and in­ter­na­tional in­dus­try lead­ers from the pub­lic and pri­vate sec­tors.

“Our in­dus­try world­wide must also do bet­ter at ex­plain­ing how re­spon­si­ble de­vel­op­ment and uti­liza­tion of oil and gas can sup­port the tran­si­tion to a more sus­tain­able econ­omy,” he said. “The switch from coal to gas-fired power gen­er­a­tion, which emits half the vol­ume of CO2, may have the great­est im­pact on low­er­ing car­bon foot­print. “That is why we firmly be­lieve that the oil & gas sec­tors will con­tinue to play a vi­tal role in meet­ing world’s en­ergy needs for trans­porta­tion and power gen­er­a­tion go­ing for­ward, com­ple­ment­ing re­new­ables and other en­ergy sources,” he added.

Among nu­mer­ous UAE Min­is­ters and in­dus­try lead­ers at­tend­ing the fo­rum in­clude: HE Suhail Mo­hamed Al Mazrouei, UAE Min­is­ter of En­ergy and In­dus­try and cur­rent Pres­i­dent of the OPEC Con­fer­ence; HE Sul­tan Ahmed Al Jaber, UAE Min­is­ter of State and Group CEO of ADNOC; and Mus­abbeh Al Kaabi, CEO of Mubadala Pe­tro­leum and Petro­chem­i­cals.

Com­ment­ing on his par­tic­i­pa­tion, Ja­far said: “I’m hon­oured to have joined in­dus­try lead­ers and ex­perts as we de­bated the great­est chal­lenges fac­ing the en­ergy sec­tor and the re­gional econ­omy. The Mid­dle East is a ma­jor source of the world’s proven gas re­serves and is also be­com­ing a key con­sumer of both oil and gas. Our pros­per­ity is in­cum­bent upon our abil­ity to an­tic­i­pate and re­spond to the dra­matic changes in world en­ergy de­mand.”

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