Gulf states spending $50 billion to increase oil output

The Persian Gulf states have spent $50 billion to increase crude oil production.

Bahraini Energy Minister Abdul Hussein Al Mirza said the six Gulf Cooperation Council states would spend $50 billion by the end of 2010 to bolster crude oil fields and discover additional reserves. Al Mirza said the effort was greatest in Bahrain, Qatar, Saudi Arabia and the United Arab Emirates.

"We are all aware that fossil fuel, the major energy source, will not last indefinitely," Al Mirza told an energy conference on May 18. "We must also recognize the GCC commitment toward ensuring supplies of oil to the international markets calls upon them to make huge investment in developing and increasing production capacities."

Rosneft and Crescent eye Iraq venture

Rosneft could become the first Russian oil company to enter Iraq after launching a landmark oil and gas project in the Middle East with Crescent Petroleum.

Crescent, a private Emirates-based energy company, and Rosneft will today announce a partnership to develop a gas project in the United Arab Emirate of Sharjah, marking what will be the first time a large Russian company has developed hydrocarbons in the Middle East.

The Sharjah gas development is part of a strategic partnership Rosneft signed with Crescent Petroleum last month to build a presence in the Middle East after months of diplomatic exchanges between the UAE and Russia.