RIYADH, 6 November — The government will set up a holding company to undertake drilling and oil exploration within the framework of the Kingdom’s plan to extend support services to the petroleum and energy industries.
This was disclosed by Minister of Petroleum and Mineral Resources Ali Al-Naimi at the start of a three-day seminar on "the role of support services for the petroleum and energy industries in Saudi Arabia" at the King Faisal Hall here last night.
The seminar, sponsored by Saudi Aramco and seven other multinational companies, as well as Riyad Bank, is being organized as part of the petroleum ministry’s plan to mark the 20th anniversary of the reign of Custodian of the Two Holy Mosques King Fahd.
Later, Al-Naimi inaugurated the first international exhibition for petroleum, gas services and industries, where 18 oil companies in this sector, including one each from Qatar, Kuwait and the Netherlands, are participating.
Referring to the holding company, the minister said it will be a joint venture between the Kingdom’s private sector and the foreign investors. It will provide support services related to the oil and energy sector.
Al-Naimi pointed out that feasibility studies for the holding company have been completed with the assistance and cooperation of the Public Investment Fund.
The minister also disclosed that as a result of Crown Prince Abdullah, deputy premier and commander of the National Guard, international organizations from 15 countries have approved the establishment of the International Energy Secretariat’s headquarters in Riyadh.
The energy secretariat, which will become operational within a year, will promote dialogue and better understanding between the oil producing and consuming countries.
Paying tributes to King Fahd for his contribution to the Kingdom’s oil industry during the last 20 years, the minister said a landmark development in this sector was the gas initiative of Crown Prince Abdullah, when he invited the oil majors to invest in the Kingdom’s gas sector.
