Repair of damaged energy facilities in the Persian Gulf will cost $58 billion

(Patria) - The restoration of damaged energy facilities in the Middle East could amount to as much as $58 billion, according to a report by the consulting firm Rystad Energy, which TASS has seen.

"The costs of repairing and restoring energy infrastructure as a result of the war in the Middle East could reach $58 billion, according to RystadEnergy's analysis, with total costs for oil and gas facilities potentially up to $50 billion," the consulting firm stated.

The extent of the damage has significantly increased since the initial estimate of $25 billion was released three weeks ago, Rystad Energy emphasized, TASS reported yesterday.

"Rystad Energy has assessed the damage to affected energy facilities and estimates the total repair and restoration costs to be 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, the 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 to major facilities has been confirmed, requiring complete replacement of critical systems, reliance on long-lead equipment, and the inclusion of conflict-related premiums for engineering, procurement, and construction (EPC) execution, including contractor mobilization and war risk insurance, with delays associated with contractor deployment, limited logistics, and in some cases, restricted access to international supply chains," the company Rystad Energy noted.

"Iran accounts for the largest number of affected facilities and the widest range across asset types, with repair costs potentially reaching up to $19 billion in a high-damage scenario," the company announced.

The damage profile in Qatar is different, but "where the impact is more concentrated but significantly deeper in terms of technical complexity," they added.