• 5 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 10 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 14 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 18 hours Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 20 hours Chevron To Invest $4B In Permian Production
  • 21 hours U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 23 hours Iraq Says Shell May Not Quit Majnoon Oilfield
  • 3 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 4 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 4 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 5 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 5 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
  • 7 days Gulf Keystone Plans Further Oil Output Increase In Kurdistan
  • 7 days Venezuela’s Crisis Deepens As Hurricane Approaches
  • 7 days Tension Rises In Oil-Rich Kurdistan
  • 7 days Petrobras To Issue $2B New Bonds, Exchange Shorter-Term Debt
  • 7 days Kuwait Faces New Oil Leak Near Ras al-Zour
  • 8 days Sonatrach Aims To Reform Algiers Energy Laws
  • 8 days Vitol Ups Cash-for-Oil Deals With Kazakhstan To $5B
Goldman Turns Bullish On European Oil Majors

Goldman Turns Bullish On European Oil Majors

Goldman Sachs has raised its…

Expert Commentary: An Oil Price Correction Is Due

Expert Commentary: An Oil Price Correction Is Due

Oil prices rallied higher this…

PwC Advising Saudis On $20B In Cut Projects

Saudi Arabia

PricewaterhouseCoopers is advising Saudi Arabia on US$20 billion worth of projects it could cancel in order to reduce the budget deficit it had amassed with the low oil prices of the past two years, Bloomberg reports, quoting two sources in the know.

The Saudi Ministry of Economy and Planning has hired PwC to see which one-third of US$69 billion worth of government projects it could kill. The projects that the ministry and the global consultancy firm are reviewing include housing, health, education and transport contracts.

PwC is also said to be advising the Saudis on how to reduce costs of projects or put them up for privatization, Bloomberg’s sources said.

Reports that Saudi Arabia is looking for ways to slash around US$20 billion in projects first emerged in September of last year. Two months later, Saudi media reported that Saudi Arabia’s governing economic body, Council of Economic and Development Affairs (CEDA), had cancelled US$266.7 billion in projects that were not expected to accelerate the kingdom’s growth or improve the living standards for its people.

At the end of July last year, the International Monetary Fund (IMF) expected Saudi Arabia’s fiscal deficit to drop to 13 percent of GDP in 2016, from a massive 15.9 percent deficit booked in 2015.

Related: Finding Top Tier Oil & Gas Assets In 2017

In its budget plan for 2017, Saudi Arabia said that the 2016 deficit was lower than the 2015 shortfall in nominal value, but did not provide figures as to how the billions of Saudi riyals stacked up as percentage of GDP. For 2017, percentages are given, with the deficit expected to drop further to 7.7 percent of GDP in fixed prices, and financed by the issue of new debt instruments and drawing from reserves.

This year the Saudis also expect oil revenues to grow by 46 percent compared to 2016 projections, and non-oil revenues also to increase, by 6.5 percent. Still, non-oil revenues expected for this year are more than half the amount of the projected oil revenues.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News