RIYADH, 9 February 2005 — Oil Minister Ali Al-Naimi said yesterday that terrorist attacks in the Kingdom over the past two years had neither targeted nor harmed any oil plant in the Kingdom.

The minister told reporters that oil plants in the Kingdom were under tight security with many levels. “This makes it extremely difficult, if not impossible, for terrorists to reach them,” he said, adding that even if an attack were to take place, the impact on the Kingdom’s production and export of oil will be negligible. Naimi was speaking on the sidelines of a four-day anti-terrorism conference that ended yesterday.

In an audiotape last year, Osama Bin Laden urged his followers to “go on and try to prevent (the West) from getting oil.” “Concentrate your operations on that, especially in Iraq and the Gulf,” the tape said. It was believed to be the first time a purported Bin Laden tape had in effect called for attacks on the oil industry.

Asked whether the government pays attention to such messages, Naimi said: “Any statements made by leaders of terror organizations that threaten our facilities will always be taken seriously.

“We have taken additional security measures ... in the last three to four months to make sure that our facilities, which were already well protected, will be even more protected so that no terrorist will succeed in damaging (even) slightly our facilities.”

The minister said reports that the terror attacks caused the departure of foreign experts and workers, especially in the oil sector, were “sensationalized.” He said countries that discouraged their citizens from travel to Saudi Arabia reacted in an “exaggerated and unnecessary” manner.

Turning to oil production, Naimi said the Kingdom planned to hike its oil output capacity to 12.5 million barrels per day (bpd) within four years and had considered the possibility of raising it to 15 million, if required. He said the plan was based on expectations of a “continuation in the increase in world demand during the coming 20 years.”

Naimi confirmed that Saudi Arabia was currently producing nine million bpd and said it would continue to do so until further notice. He avoided committing his country to a cut in oil production before the next OPEC meeting, which takes place in the Iranian city of Isfahan on March 16.

The minister said the Kingdom’s oil policies were “based on clear grounds which are moderation and the stability of the market by providing enough exports that would suffice the market’s needs.” They were also intended, he said, to stabilize oil prices, which would be beneficial to the producer, and motivate the petroleum industry to invest more and contribute to the global economy, particularly the economy of developing nations.

Saudi Arabia was cooperating with the OPEC and with other countries to implement the policies, the minister said. “The Kingdom is also coordinating with importing countries on a one-to-one basis or through the International Energy Forum which is being hosted by the Kingdom’s secretary general in Riyadh.” This seeks to implement improved cooperation between oil producing and oil importing countries and create increased transparency in the petroleum market.

Al-Naimi cited examples of how Saudi Arabia has played a vital role in the stability of the oil market over the past 30 years.

“An example of this role would be how the Kingdom has maintained a stable surplus productivity of 2 million barrels a day that could be used when needed to cover world shortage in production,” he said.

He mentioned that during the Iraq-Iran war in the late seventies and early eighties, the Kingdom increased its production to compensate the shortage of oil production from those two countries.

He also said that the Kingdom compensated for global oil shortage in 1990 when Iraq invaded Kuwait, and again in 2003 when oil production lessened due to several reasons from producing countries.

“Last year, Saudi Arabia increased its production to meet the demands of the global market which reached levels never seen before in the final quarter of the last century. In addition to that, the Kingdom managed to raise its production ceiling to 11 million barrels per day,” he said.