MANILA, 22 March 2005 — Petroleum and Mineral Resources Minister Ali Al-Naimi said yesterday the Kingdom can produce an additional 1.5 million barrels a day of oil to help pull down rising world crude prices.

Naimi, who was in Manila on a three-day visit, said Saudi Arabia was also building its capacity to bring its output to 12.5 million barrels a day by 2009.

“We can increase supply by 1.5 million barrels a day,” he told reporters after meeting Arroyo and other government officials. “It depends on demand.”

“We will be more than happy to boost output if there is a new customer,” he said when asked if Saudi Arabia can increase its output. “If we have a customer, yes. There is plenty of supply,” he added. “What we in Saudi Arabia want is to alleviate this unnecessary concern about shortage of supply.”

Naimi also said that the Organization of Petroleum Exporting Countries (OPEC) could decide at “any time” to another increase in output to bring the group’s ceiling to 28 million barrels a day.

“The president has been authorized to effect the second tranche whenever he feels it is necessary,” he said, referring to OPEC President Sheikh Ahmad Al-Fahd Al-Sabah. “As far as I know, he is already discussing the matter with the rest of OPEC ministers to choose a date to announce the increment.”

Last week, OPEC raised production by 500,000 barrels a day, taking total output to 27.5 million barrels per day.

It noted that world oil demand was expected to rise to almost 86 million barrels per day in the fourth quarter of 2005, requiring the increased output.

Naimi said Saudi Arabia, the world’s largest producer, was committed to ensure stability of oil prices and “assure that world economic growth is not negatively impacted”.

“We don’t like high prices that negatively impact on economic growth particularly of developing nations,” he said.

Philippine President Gloria Macapagal Arroyo exchanged promises with Naimi intended to make energy more affordable for the average Filipino.

Arroyo said she told Naimi during their meeting the Philippines was grateful for efforts by Saudi Arabia to help keep oil prices down. “We have been sharing with the minister our deep concern about maintaining the price of affordable energy for all Filipinos,” she said.