By Joanna Hartley
Saudi Arabia’s five year energy plan has been revised and spending cuts introduced as a result of a fall in oil prices, it emerged on Saturday.
According to Middle East Economic Survey (MEES) the Kingdom has put several of its energy projects on hold, including the offshore Hasbah natural-gas field and a gas-to- liquids facility at Shaybah.
The report failed to say where it had gained the information on the delays but added that state-run Saudi Aramco was planning to also slash spending on the so-called Maintain Potential programme.
Investment in the project, which includes the 1.2 million-barrel-a-day Safaniyah field, will be halved to around $500 million this year and $400 million in 2010, MEES said, according to a report on Bloomberg.
Oil prices have fallen rapidly since a $100 plus high a year ago, with crude futures trading in New York around 53 percent lower than they were this time last year.
However, Aramco is going ahead with its offshore Arabiyah gas project, due to start as part of a joint development with Hasbah.
Source: Arabianbusiness.com
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