The report headlined “Aramco Defers Khursaniyah Project” that appeared on page 15 of the Arab News on Saturday, Jan. 13, 2007 edition, incorrectly reports that “Saudi Aramco postponed the commissioning of the 500,000 bpd Khursaniyah oil and gas project to the fourth quarter of the year, a few months later than the previously announced date without giving the reason for the delay, Al-Eqtisadiah newspaper reported yesterday. Company sources had earlier said the Khursaniyah oil and gas project would be ready for production in June 2007.”

The Khursaniyah Project has always been scheduled for completion in the fourth quarter of the year. Saudi Aramco Vice President for Project Management Ali A. Al-Ajmi said, “There has been no change in the Khursaniyah schedule and the program is progressing as planned. The Water Injection facilities are due to start up in June, but the rest of the Khursaniyah facilities are scheduled for completion in December as per the original plan.”

Saudi Aramco communications on the Khursaniyah Project completion clearly state that the project is on track and scheduled for completion by deadline. In this regard, Ghalib A. Al-Alwan, Khursaniyah Projects Department manager, commented on Sept. 22, 2005, that “Meeting this milestone is essential to accomplishing the Khursaniyah Program objective of having the facilities on stream by December 2007.” (See http://www.saudiaramco.com/bvsm/JSP/content/articleDetail.jsp?SA.contentOID=107376512)

A further statement was issued by Saudi Aramco on June 21, 2006 that the “Producing Facility and Utility Project (KPFU) hit another milestone recently when Saudi Aramco signed a lumpsum turnkey (LSTK) contract with Snamprogetti of Italy. That marks KPFU’s first conversion from a cost reimbursable (CR) to an LSTK contract. The drive behind the strategy was the demanding schedule that required the project to be completed by year-end 2007.” (See http://www.saudiaramco.com/bvsm/JSP/content/articleDetail.jsp?SA.contentOID=107376638)

Incorrect reports on the delay of the Khursaniyah Project are believed to have resulted from confusion with the June start-up date of the Water Injection facilities.