2000 News Story

King Fahd chairs Supreme Council for Petroleum and Minerals

Custodian of the Two Holy Mosques King Fahd bin Abdulaziz, who is also President of the Supreme

Council for Petroleum and Minerals (SCPM), today chaired a meeting of the council, which reiterated the

continuing Saudi policy on oil that aims at realizing a balance in global markets in a way that preserves

the interests of petroleum-exporting countries, ensures continued international economic growth, and

stabilizes supplies and prices at reasonable levels in line with the June 2000 agreement reached by the

member states of the Organization of Petroleum Exporting Countries (OPEC).

Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Naimi was urged to continue to work for

realization of these goals through collaboration with OPEC member states for a suitable increase in

production in a way that restores balance to the oil market and stabilizes prices. He was also urged to

review suitable mechanisms for realizing this stability while continuing coordination with other

oil-producing countries, both OPEC and non-OPEC.
The council welcomed the upcoming Second OPEC Summit in Caracas, Venezuela, and hoped that the

conference would culminate in success as regards evaluation of its experiences and readiness to deal with

future developments.

In his report, SPCM Secretary-General Dr. Mutlab Al-Nafeesa said the council had discussed the following


First: The Kingdom's oil strategy as prepared by the Ministry of Petroleum and Mineral Resources and

revised by the ministerial committee.

• This strategy stems from the strategic goals of the development plans, which have focused on developing human resources, improving the standard of living, diversifying the base of the national economy, enhancing infrastructure, and broadening the role of the private sector.

• The strategy covers the Kingdom's distinguished role in the oil market and its continued cooperation with various countries both inside and outside OPEC for stabilization of that market, guaranteeing oil supplies to consuming countries and building an integrated petroleum industry that contributes positively to the process of economic development.

• The strategy aims at safeguarding the share of petroleum in global energy consumption, and at safeguarding the Kingdom's share in the world oil market.

• The strategy, on the other hand, encourages research aimed at diversification of petroleum usage, improvement of its products, and their conformity with environmental standards.

• The strategy appreciates the pioneering role of Saudi Aramco in exploring oil reserves throughout the Kingdom and in developing the sectors of refining and local marketing, and its participation in joint projects in petroleum operations both with the Saudi private sector and with international oil companies.

• The strategy focuses on enabling the private sector to contribute to the development of services and supporting industries.

• The strategy underscores the importance of cooperation with the concerned state authorities for realization of optimum energy use in addition to continued training and rehabilitation of Saudi cadres in the technologies of the oil industry and its marketing.


Secondly: The working plan for Saudi Aramco 2000-2004, which includes:

1. Application of a great many new technologies for increasing its productive capacity and reducing

its costs;

2. Continued evaluation of the company's selection of suitable grades of oil, whose prices are reflected by market conditions;

3. Increase of supplies of natural gas for boosting industrial development in the Kingdom;

4. Preservation of reasonable levels of productive capacity so as to enable the Kingdom to meet world demand and confront any adverse impact on the situation of the petroleum market;

5. Production and marketing of profitable crude oil, and making lead-free gasoline available in the local market by 2001;

6. Development of security and safety measures and preservation of the environment;

7. Continued development of the skills of Saudi employees so as to enable them to occupy posts at all levels, with the percentage of nationals in the work force expected to reach 87 percent by 2005.

Thirdly: The Saudi Aramco Annual Report for 1999, which included the following achievements:

A. Inauguration of the Al-Shaybah field in the Empty Quarter, by Crown Prince Abdullah bin Abdulaziz, Deputy Prime Minister and Commander of the National Guard;

B. Development of Ras-Tanura refinery, and the pipeline for transportation of petroleum products

from Dhahran to Riyadh and Qassim;

C. Expansion projects for the gas laboratory at Al-Juaymah and for the treatment utilities at the gas laboratories at Al-Othmaniya and Beiri, and commencement of setting up the gas laboratory at Al-Hawiyya.

Dr. Al-Nafisa went on to say that the council adopted a number of decisions, including the following:

1) Approval of the Kingdom's oil strategy;

2) Approval of the working plan for Saudi Aramco for 2000 to 2004, and for the work of the preparatory committee to continue with study of comments concerning the plan;

3) Approval of the annual report of the company for 1999;

4) Approval of the general budget of the company;

5) Formation of a committee comprised of representatives from the Ministries of Petroleum and Mineral Resources, Finance and National Economy, Industry and Electricity, and Agriculture and Water, the

executive official of the assigned team for negotiations with international petroleum companies, and a

representative from the experts commission at the cabinet for consideration of ways to supervise gas

supplies and their prices. The committee will consult the concerned persons and specialists in both

government and non-government sectors and then submit its recommendations to the SCPM within a

period not exceeding 90 days.