DAMMAM, 20 November 2006 — Saudi Aramco’s vice president of exploration detailed the company’s efforts to bolster natural gas supplies to support the Kingdom’s growing petrochemical industry to business leaders and investors yesterday at the Saudi Energy Forum in Dammam. He reported significant finds that should add millions of cubic feet per day of natural gas to the country’s energy stream.

“Three decades ago, Saudi Arabia developed a natural gas strategy centered on the Master Gas System — the largest gas production and processing network of its kind,” Abdulla A. Al-Naim told forum delegates. “Today, the Master Gas System is the backbone of Saudi Arabia’s industrial sector and powers utilities across the country. The Master Gas System will help provide gas supply to the Kingdom’s growing petrochemical industry.”

The key to the industry is a reliable supply of gas to serve as petrochemical feedstock, and Al-Naim said that Saudi Aramco was prepared to deliver gas in increasing volumes as required.

“Since the 1994 gas exploration program began, Saudi Aramco has added over 72 trillion cubic feet of gas reserves from the Khuff, Unayzah and Jauf reservoirs,” Al-Naim said. He described the progress of the Ghazal gas field from exploration to discovery in just three years.

“Ghazal was discovered in 2000, and since that time we have drilled 25 development gas wells,” Al-Naim said, adding that output from the field was expected to nearly double within two years.

Gas development also is taking place offshore, and Al-Naim described a giant gas discovery in the Arabian Gulf earlier this year that he said had the highest flowing gas rate encountered so far in the ancient Khuff formation thousands of feet below the surface.

“Saudi Aramco onshore exploration activities are in high gear to support the existing gas plants and add new reserves,” Al-Naim said. “Offshore exploration activities in the Arabian Gulf and the Red Sea are moving aggressively forward. During the next 10-year plan, Saudi Aramco will add 50 trillion cubic feet of non-associated gas reserves.”