DAMMAM, 16 May 2004 — Eastern Province Governor Prince Muhammad ibn Fahd has assured local and foreign investors of the Kingdom’s complete protection.
Prince Muhammad was delivering the keynote address at the First Saudi Arabian International Gas Conference at the Eastern Province Chamber of Commerce and Industry here last night amid tight security.
The three-day conference is attended by over 600 business executives and experts from the Kingdom and abroad including representatives from the six oil and gas companies which recently signed a gas deal worth SR11 billion with Saudi Arabia.
Three joint ventures — Lukoil Saudi Arabia, Sino-Saudi Gas and Enirespa Gas — have been established for the implementation of the projects in the Rub Al-Khali or Empty Quarter, in which Saudi Aramco has a 20 percent stake each. The projects are expected to fetch total investment worth SR75 billion in five years.
In December last year, Shell, Total and Saudi Aramco established the first upstream gas development joint venture, South Rub Al-Khali Company.
Prince Muhammad said the new gas initiative represented a decisive step for a country so far dependent primarily on oil and closed to foreign investment, and the Kingdom was determined to protect it and crush the terror threat that sent oil prices skyrocketing on the international market.
Crude oil prices on the New York Mercantile Exchange shot to an all-time high of $41.50 on Friday pressured by terrorism fears in the Middle East and hot global demand.
Prince Muhammad’s assurances were reflected in comprehensive security arrangements. The authorities banned cars from the site and delegates were taken to the conference auditorium on specially provided buses.
Inside the auditorium participants had to pass through metal detectors and in many instances were also searched.
The development of the gas sector, Prince Muhammad said, will introduce new technology to the country and contribute to creating more jobs as well as presenting new business opportunities to the private sector in a range of industries.
Saudi Aramco has estimated that the three gas projects will create 150,000 indirect jobs and 35,000 direct jobs
Minister of Petroleum and Mineral Resources Ali Al-Naimi told the inaugural session that the opening of the Saudi gas sector to international investors would be of mutual benefit to the Kingdom and its partners.
With the new gas initiatives, Saudi Arabia plans to enhance its gas production to 12 billion standard cubic feet by 2025, he said. The Kingdom currently produces 6.9 billion standard cubic feet of gas per day.
Abdul Rahman Rashid, the chairman of the Chamber of Commerce and Industry in the Eastern Province, also highlighted the significance of the conference and its impact on the local economy.
