Arab energy producers to need USD46b in loan: Apicorp

09 Mar 2011

(MENAFN) Arab Petroleum Investment Corporation (Apicorp) said in a review that Arab hydrocarbon producers would need to take USD37 billion to USD46 billion a year in loans to finance energy projects till 2015, reported Emirates 247.

The review also predicted an increase in average costs of energy projects, despite the decline in costs in the last review. This increase would be the second since 2003, as costs tripled between 2003 and 2008.

Apicorp added that major Arab project sponsors aimed at raising the scale and scope of their projects in order to decrease the costs of units and to ensure a sufficient return on invested capital as solutions to the problem of increasing costs.

It is worth noting that the current political unrest spreading in the Arab region may affect project funding negatively as some countries, like Tunisia and Egypt, went down in their ratings, as the report said.

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