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Arabs Delaying Oilfield Work

Arabs Delaying Oilfield WorkArabs Delaying Oilfield Work

Persian Gulf Arab oil producers are delaying some field maintenance until next year to keep production high and reduce costs, as they forecast weaker oil prices in 2016, industry sources said. They told Reuters that OPEC members Saudi Arabia, the UAE and Qatar are rescheduling non-essential maintenance work at oilfields originally planned for the last quarter of this year later into 2016 due to low oil prices, Reuters reported. "The non-urgent maintenance is definitely being pushed. We see huge focus on production in Qatar, Abu Dhabi and Saudi Arabia," said one industry source. "They are delaying to keep production high; if they shut down now, they will not produce, and they also have to preserve cash," the source said. "There is delay. The reason is low oil prices; they are trying to have some control over the cost," another industry source said of Saudi Aramco's maintenance plans this year. An industry source said: "Companies are trying to benefit from higher margins now as they expect oil prices to drop next year, when Iran comes back."

 

Financialtribune.com