World News

The restoration of damaged energy facilities in the Middle East may require up to $58 bln, Rystad Energy consultancy said in its report seen by TASS.

"Repair and restoration costs for energy-linked infrastructure as a result of war in the Middle East could hit $58 billion, Rystad Energy analysis shows, with the total for oil and gas facilities up to $50 billion," the consulting firm said.

The scope of damage has increased significantly since the time when the initial estimate of $25 billion was released three weeks ago, Rystad Energy stressed.

"Rystad Energy has assessed the damage across impacted energy-linked facilities and estimates total repair and restoration costs in the range of $34 billion to $58 billion," the company noted. "The lower end of the range assumes that, for facilities where the extent of damage is not yet fully clear, impacts are limited in scope, allowing for modular repairs supported by existing spare equipment and shorter procurement cycles," it continued.

"The upper end reflects scenarios where structural damage is confirmed across major facilities, requiring full replacement of critical systems, reliance on long-lead equipment and the inclusion of conflict-related premiums on engineering, procurement and construction (EPC) execution, including contractor mobilization and war-risk insurance, alongside delays linked to contractor deployment, constrained logistics and in some cases restricted access to international supply chains," Rystad Energy noted.

"Iran accounts for the highest number of impacted facilities and the widest spread across asset types, with repair costs potentially reaching up to $19 billion under a high-damage scenario," the company said. The damage profile in Qatar is different but "where the impact is more concentrated but significantly deeper in terms of technical complexity," it added.