Gulf Arab nations facing drop in revenues
With oil prices hovering around $40 per barrel, financial analysts are expecting Middle Eastern oil-producing nations to see a decrease of $300 billion in oil revenues in 2009.
The International Monetary Fund is also projecting a decrease in economic growth in the region, BBC reports.
Because of low oil and natural gas prices, economic growth for the region in 2009 is expected to be about 3.5 percent, down from the 6.8 percent growth that was seen in 2008, said Masood Ahmed, IMF Middle East department chief.
Saudi Arabia is preparing to face record fiscal deficits of up to 3.1 percent of its gross domestic product, according to the IMF. That is compared to the 22.8 percent surplus the country experienced in 2008.
"There has been an extraordinary collapse in confidence," Ahmed said. "Everybody is holding back in making decisions about spending."
Dubai is also preparing for a slowdown in economic growth. The country's chief economist, Raed Safadi, is projecting the country's economy will grow just under 2.5 percent in 2009 based on $48-per-barrel oil.
In Dubai, budget-makers rely on oil revenues at between 3 percent and 4 percent of their nation's GDP.
Egypt is also preparing for revenue losses in the coming year based on low oil and gas prices.
Bolivia expects $530 million in gas investments in 2009
Bolivia's energy minister recently said the country is expecting an increase in investments in oil and natural gas in 2009, bringing investments to about $530 million.
Bolivian Hydrocarbon and Energy Minister Saul Avalos said joint ventures with Russia and Venezuela will replace investments from private investors, which have decreased, Tehran Times reports.
Gazprom, Russia's largest natural gas exporter, will work with Bolivia to develop natural gas deposits in the nation's gas-rich eastern lowlands.
In addition, Venezuela's and Bolivia's state oil companies plan to invest $240 million to explore for new natural gas deposits in Bolivia.
"The amount of investment this year is higher than before the nationalization," Avalos said.
Bolivia is believed to hold the second-largest natural gas reserves in South America after Venezuela, but natural gas output dropped in 2008 as state oil company YPF Bolivianos reportedly focused on producing liquefied petroleum.
Mitsubishi Corp. and Petrobras will build a new offshore oil rig
Japan's Mitsubishi Corp. and Brazil's state-owned Petrobras have agreed to form a joint venture to build an $830 million ship to drill for crude oil and natural gas in deep water.
The ship will be capable of drilling to depths in the ocean of up to 9,843 feet, Mitsubishi said in a statement as reported by Oil and Gas Eurasia.
A South Korean shipbuilder has been chosen to build the vessel, though no name was released. The ship is expected to be completed in June 2010.
Petrobras will use the ship to drill in its domestic deep-sea oil and gas reserves.
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Closing oil prices, Feb.10, 3 p.m., London
Brent Crude oil: $47.29
West Texas Intermediate crude oil: $40.78
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