RIYADH, August 03, 2005  --  After the passing of King Fahd ibn 'Abd al-'Aziz on Aug. 1, international crude-oil prices rose briefly to a record high of $62.30 a barrel, under-scoring the king's fundamental global influence during his momentous 23-year rule.

During his reign, King Fahd presided over historic progress, prosperity and change in Saudi Arabia, years that brought the Kingdom to the center of the world's economic and political stage, and vastly improved the lives of its citizens.

Immediately following King Fahd's death and in accordance with the Kingdom's rules of succession, the royal family this week declared allegiance to Crown Prince 'Abd Allah ibn 'Abd al-'Aziz as the new monarch. King 'Abd Allah then named Prince Sultan ibn 'Abd al-'Aziz, the Minister of Defense and Aviation, as the new Crown Prince and Vice President of the Council of Ministers.

The government Saudi Press Agency (SPA) issued this statement: "With all sorrow and sadness, the Royal Court in the name of Crown Prince 'Abd Allah ibn 'Abd al-'Aziz and all members of the family and on behalf of the nation announces the death of the Custodian of the Two Holy Mosques King Fahd ibn 'Abd al-'Aziz, who died after suffering from an illness."

Statements of condolence arrived from national leaders throughout the world. Across the Arab world, governments voiced their sadness and announced official periods of mourning, and an Arab summit scheduled in Egypt was cancelled. Jordan's King Abdullah decreed a 40-day period of mourning in the Royal Court. The Palestinian Authority also announced a three-day mourning period, recalling that Fahd was a staunch defender of Palestinians and other Arabs.

"The Kingdom has lost an honorable son and one of its dearest leaders," Egyptian president Hosni Mubarak said. "History will remember the great and numerous achievements he accomplished for the sake of the holy sites, his people and the nation."

A royal statement from King 'Abd Allah authorized governors of all Saudi regions and governorates and other relevant entities in the Kingdom to accept condolences and pledges of allegiance from citizens in their region. This was to save citizens the trouble of traveling to Riyadh for this purpose, the statement explained.

King Fahd, 82 when he died this week at a Riyadh hospital, was not only enormously influential in the development of the Kingdom's economy and educational institutions, he also was a steadfast supporter of Saudi Aramco during a period of historic growth, diversification and success as it became a fully integrated international petroleum company with the world's largest reserves (see list of Saudi Aramco achievements and milestones during his reign).

Born in 1923 in Riyadh, now the Saudi capital, the late king's full name, according to SPA, was Fahd ibn 'Abd al-'Aziz ibn Abdulrahman ibn Faisal ibn Turki ibn 'Abd Allah ibn Mohammed ibn Sa'ud ibn Mohammed ibn Meqrin ibn Markhan ibn Ibrahim ibn Mousa ibn Rabee'a ibn Mani ibn Rabee'a Al-Mureedi. His father was the unifier and first king of Saudi Arabia, 'Abd al-'Aziz ibn Abdulrahman Al-Sa'ud, who was also known as Ibn Sa'ud.

During his childhood in Riyadh, Fahd studied at a private school for princes and joined the Islamic Institute in Makkah to prepare for future royal duties. He later studied English and received extensive instruction in politics and literature, and he was reportedly an avid reader of books pertaining to world leaders. As a young man, he met, on behalf of his father, the leaders of various tribes and worked to resolve their problems.

Fahd's first formal government post was as the Minister of Education, to which he was appointed in 1953. He was named Minister of the Interior in 1962, and Second Deputy Premier (in addition to his Interior portfolio) in 1967. He was appointed Crown Prince and First Deputy Premier on March 25, 1975. He became the King of Saudi Arabia on June 13, 1982, following the death of the late King Khalid.

As a result of his lifelong interest in reading, King Fahd established the King Abdulaziz Public Library in Riyadh and a sister library in Casablanca, Morocco.

He also established the Kingdom's National Festival of Heritage and Culture held annually in Janadriyah, near Riyadh. He also founded the Equestrian Club in Riyadh. Government bodies headed by King Fahd during his career include: the Cabinet, National Security Council, Supreme Petroleum Council, Council of Higher Education and Universities, Royal Commission for Jubail and Yanbu', Supreme Youth Welfare Council, Higher Commission for Educational Policy, Royal Commission for the Development of Madinah, Higher Commission for King Abdulaziz City for Sciences and Technology, Council of the Royal Family, and Supreme Commander of the Armed Forces.

King Fahd steered a pragmatic course through global oil crises, wars and regional political conflicts to bring Saudi Arabia to a preeminent position in world affairs. During his reign, the Kingdom held the world's largest crude oil reserves, was the largest exporter of crude and natural gas liquids (NGL), and maximum sustained daily oil production capacity was increased by Saudi Aramco to more than 10 million barrels per day (bpd), with projected scenarios from 12-15 million bpd to feed global demand in the future.

While King Fahd was monarch, he supported the strategic diversification of the Kingdom's economy, including harnessing the country's enormous deposits of natural gas - and massive exploration for additional reserves - to provide fuel and feedstock to a burgeoning domestic petro-chemicals industry. The company is now exploring development of major integrated petroleum/petrochemical complexes on both Saudi coasts.

Led by King Fahd, the Kingdom's economy was set on a path toward increasing privatization and opening up to foreign investment.

On the world stage, one of Fahd's greatest achievements was bringing together Lebanese legislators to Taif in 1989 to hammer out an accord that ended 15 years of civil war. King Fahd left the Kingdom as one of the Arab world's most modern and prosperous countries. His legacy is one of wise achievement, personal kindness and compassion for his people.

"I will be father to the young, brother to the elderly," King Fahd once said. "I am but one of you; whatever troubles you, troubles me; whatever pleases you, pleases me."

He supervised projects that greatly improved conditions for the more than 2 million pilgrims who travel annually to the Kingdom to perform hajj.

Under his rule, holy mosques in Makkah and Madinah were greatly expanded to accommodate 1 million and 500,000 visitors, respectively. And hajj facilities throughout the Makkah area were vastly improved to make the pilgrimage safer and more convenient for the throngs of faithful who converge on the city each year to perform one of Islam's most sacred acts of devotion.

Also during his reign, the Kingdom enjoyed an educational and agricultural transformation, helping to bolster its authority and influence as a regional and international power.

Oil Industry Grew During Fahd's Reign

The oil and gas industry in Saudi Arabia flourished during King Fahd's 23-year reign. Indeed, the government acquired full ownership of the Arabian American Oil Co. (Aramco) in 1980 and changed the company name to the Saudi Arabian Oil Co. (Saudi Aramco) in 1988 to reflect that critical milestone.

Under Fahd's rule, the company appointed its first Saudi president and CEO, Ali I. Al-Naimi. Al-Naimi ultimately became chairman of the company's Board of Directors and then Saudi Minister of Petroleum and Mineral Resources, a position he retains today.

Following are some important achievements in the oil and gas industry that King Fahd personally supported during his rule:

  • Giant projects: On Jan. 29, 1983, the king inaugurated Aramco and Petromin oil and gas projects that formed the nucleus of Yanbu' Industrial City.

  • Aramco 50th anniversary: On May 16, 1983, the king visited Aramco to honor its 50th anniversary, and to inaugurate the Exploration and Petroleum Engineering Center.

  • Birth of Saudi Aramco: On Nov. 8, 1988, the Council of Ministers issued a decree approving the bylaws of the now 100-percent Saudi-owned Saudi Aramco. The King instructed the Minister of Petroleum and Mineral Resources to expand exploration for the benefit of the country.

  • Master Gas System: Key parts of the massive Master Gas System, built by Saudi Aramco, were fully or nearly completed.

  • International ventures:

    • In 1988, Saudi Aramco entered its first international joint venture, an agreement between Saudi Aramco and Texaco - Star Enterprise - to establish a joint project for refining oil products and distributing them in the United States.

    • In 1991, a Saudi Aramco subsidiary buys 35 percent of SsangYong Oil Refining Co. Ltd. (now S-Oil Corp.) in the Republic of Korea.

    • In 1996, a Saudi Aramco subsidiary enters a joint venture with Motor Oil (Hellas) Corinth Refineries S.A. and Avinoil Industrial Maritime Oil Co. S.A. in Greece, purchasing a 50 percent share in Motor Oil (Hellas).

    • Royal approval was granted in 1994 to finalize the agreement stipulating a Saudi Aramco subsidiary's ownership of 40 percent of Petron Corp. of the Philippines, the Asian country's largest oil refiner and distributor.

  • Central Province oil discoveries: The first oil discovery in the Central Province was at al-Hawtah field in 1989, followed by others in the next several years.

  • Growth horizons: In 1993, royal decree merged the operations of the government's General Organization for Petroleum and Minerals (Petromin) with Saudi Aramco.

  • Tanker fleet: Construction of 15 advanced supertankers was completed in 1995 for Saudi Aramco's shipping subsidiary, Vela International Marine Ltd.

  • Strategic storage: Crown Prince 'Abd Allah on Feb. 23, 1999, inaugurated the opening ceremony of the national Saudi Strategic Storage Program, managed and operated by Saudi Aramco.

  • Shaybah inauguration: On March 10, 1999, Crown Prince 'Abd Allah inaugurated the giant Shaybah oilfield project, adding 500,000 barrels per day of Arabian Light Crude to the company's production.

  • Gas agreements: Major concession agreements were signed with a number of international oil company consortiums in 2004to explore for non-associated gas in the Rub' al-Khali Desert.

  • Mega projects: In the past few years, several giant industrial projects have been inaugurated by Saudi Aramco, including the Hawiyah, Haradh and Qatif oil and gas projects.

© Press Release 2005