With more than 50 per cent of global crude oil reserves and over 45 per cent of its gas deposits, the Middle East and North Africa (Mena) region is one of the world’s leading hydrocarbon projects markets. The need to meet rising local and international energy demand has driven high levels of investment in oil and gas capital projects in recent years, with over $357bn-worth of major contracts awarded from January 2011 to December 2017. These investments cemented Saudi Arabia’s position as the most influential global oil exporter and propelled Qatar into number one spot for both liquefied natural gas (LNG) and gas-to-liquids (GTL) production.

During 2017, the region saw $57.4bn-worth of contract awards, with about 50 per cent of the investments targeted towards downstream activities. Meeting rising petroleum demand and reducing reliance on petroleum imports have been the areas focus for most countries in the region, as is reflected in the nature of contracts awarded during last year.

Oil companies are considering investing in the development of downstream resources, while investments in the upstream sector are progressing at a steady pace. Notably, the total value of active upstream oil projects in Saudi Arabia increased to $21.4bn at the start of August 2017, the highest level in the last five years. However, most upstream oil projects are aimed at offsetting declines in existing fields and not at increasing production capacity.
With Opec production cuts supporting oil prices to some extent, and the hope of further price increase owing to the extension of these cuts through 2018, the outlook for the region’s projects market is positive.