Abu Dhabi: The UAE's long-term plans to expand oil and gas production capacity remain on track despite the current depressed oil market resulting from the global economic crisis, says Minister for Energy Mohammad Bin Dha'en Al Hameli.
"Our investment plans are not affected by short-term variations in the oil price," a newsletter at the Gastech-2009 exhibition and conference, currently underway in Abu Dhabi, quoted Al Hameli as saying.
"The UAE takes a long-term view of all investment plans, whether upstream or further down the value chain. We do not link our long-term plans to short-term market fluctuations. We continue to invest in long-term sustainable capacity," he added.
International oil prices have fallen to around $60 (Dh220.2) a barrel from an all-time high of $147.27 a barrel on July 11 due to global economic downturn and financial crisis, which has crimped oil demand worldwide.
Al Hameli said falling material costs and a more benign contracting market were prompting the UAE to carry out certain projects.
"The UAE continues to work on a wide range of projects. Over the last few years, the final cost of projects increased dramatically due to increasing engineering and commodity prices," he said.
"These costs are coming down to more reasonable levels and, as a result, many project promoters are looking to benefit from these falls. In some cases, this could lead to delays but, in general terms, projects are being boosted due to lower costs," said Al Hameli.
Al Hameli did not mention any projects specifically. However, state-owned Abu Dhabi National Oil Company (Adnoc) has handed out almost $5 billion for engineering, procurement and construction contracts in the past 12 months.
