Saturday, Apr 14, 2007
(Updates with more quotes from king's speech, comment from officials)
RIYADH (Zawya Dow Jones)--Saudi Arabia, which holds the world's largest oil reserves, is seeking to guarantee fair oil prices and boost output capacity to meet rising demand, King Abdullah Bin Abdel Aziz said Saturday.
"In the area of oil, Saudi Arabia is aware of its international responsibilities and work to achieve fair prices take into account the interests of the consumer and the producer," the king said in his annual speech to his consultative body, the Shoura council. "Saudi Arabia is also seeking to increase its oil production capacity to be able to fulfill its obligations to national development and the requirements of the global economy."
Saudi Arabia, the most influential and largest member of Organization of Petroleum Exporting Countries, is undertaking a program to increase its upstream output capacity from the current 11.3 million barrels a day to 12.5 million barrels a day by 2009. It's also boosting its downstream refining capacity by almost 50% to 6 million barrels a day.
In March, the kingdom produced 8.65 million barrels a day of crude oil, according to a survey by Dow Jones Newswires.
Abdullah said the government is continuing to support the private sector and is taking steps to remove obstacles facing local and foreign investors in the kingdom.
"The country has exceeded its development targets," he said. But "some regions need extraordinary care to achieve development," he added.
According to Finance Ministry, Saudi gross domestic product grew 12.4% in 2006 in current prices and 4.2% in constant prices reaching, 1.3 trillion riyals ($347 billion).
The king also said all Gulf States have right to "peaceful nuclear program."
Abdullah's statement comes amid tensions in the Persian Gulf region over Iran's nuclear program. Iran is locked in a stalemate with the U.S. and the U.N. over its decision to press ahead with its nuclear program.
The comment also follows Gulf Cooperation Council countries' decision in December to develop a nuclear power program to meet the region's soaring power demand.
The GCC is made up of the U.A.E., Saudi Arabia, Oman, Qatar, Kuwait and Bahrain.
Middle East states, where economies are booming from record high oil revenue, are seeking to build nuclear plants to meet surging demand for electricity and sea water desalination.
Transport Minister Jabara Al-Seraisry told Zawya Dow Jones several investment opportunities are to be offered to the private sector. Those include transportation projects such as railway and seaport expansions, as well as the construction of efficient public transportation systems in major Saudi cities
"We have finalized all studies for light trains networks in Riyadh and Al Medina, the minister said. "We expect to sign their contracts during this year or early next year."
Speaking to Zawya Dow Jones on the sidelines of the meeting, Saudi billionaire and Kingdom Holding Chairman Prince Waleed bin Talal urged the private sector to make every effort to take advantage of investment opportunities offered by the government.
-By Anees Al Qudaihi, Dow Jones Newswires; +966 1 2914872; anees.alqudaihi@dowjones.com
Copyright (c) 2007 ABQ Zawya Ltd. and Dow Jones & Company, Inc.
(END) Dow Jones Newswires
14-04-07 1530GMT
