Saudis to invest $80 billion to raise oil output: Report

June 17th, 2008 - 4:51 pm ICT by IANS  

Riyadh, June 17 (DPA) Saudi Arabia is planning to invest $80 billion to increase its oil output to 12.5 million barrels per day and boost its refining capacity by 43 percent in the next few years, according to an economic report published Tuesday. With the increase in oil prices, Saudi Arabia’s economy will expand and its investment in the oil industry and non-oil sectors will see a big increase in the next years, the report issued by the Federation of Chambers of Commerce and Industry in the Gulf Cooperation Council (GCC) predicted.

Riyadh plans to expand its refinery capacity to 6 million barrels per day in the next years, according to the report, which was published in the Saudi daily Arab News.

GCC is a predominantly economic alliance that includes Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.

Non-Saudi GCC investment in oil in the coming years is expected to reach about $170 billion, the federation estimated.

Saudi Arabia, the world’s largest oil exporter, is considering boosting its oil production to 9.7 million barrels per day in July, its highest level in more than 25 years, to bring down sky-rocketing oil prices.

The announcement was made over the weekend by UN Secretary General Ban Ki-moon after talks with the Saudi monarch in Riyadh.

Markets await a summit, which is due to be held in Saudi Arabia this weekend, where oil producers and consumers plan to come together to discuss the crisis caused by record oil prices.

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |