The UAE’s long-term plans to develop oil and gas production capacity remain on track in spite of the present depressed oil market, Minister for Energy Mohammad Bin Dha’en Al Hameli said.

Global oil prices have dropped to about $60 a barrel from an all-time high of $147.27 a barrel on July 11, 2008 because of global economic downturn and financial crisis, which has crimped oil demand worldwide.

“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,” said Al Hameli.

He added that falling material costs and a benign contracting market were encouraging the country to take on certain projects.

“Over the last few years, the final cost of projects increased dramatically due to increasing engineering and commodity prices

“These costs are coming down to more reasonable levels and, as a result, many project promoters are looking to benefit from these falls,” said Al Hameli.

By staff writer