Kingdom and Oil Market Stability

Riyadh, June 20, SPA--The Kingdom of Saudi Arabia looks forward with
great interest under the leadership of the Custodian of the Two Holy
Mosques King Abdullah bin Abdulaziz Al Saud and the Crown Prince to
the stability of oil prices in the world market to preserve the
interests of oil producers and consumers alike, to the continuing
growth of the global economy especially in developing countries, and
to achievement of prosperity for the peoples of the world.
The Kingdom of Saudi Arabia as the largest exporting country of oil
in the world will not spare any effort to achieve that objective. Its
oil policy always aims to enhance and strengthen cooperation and
dialogue with oil producing and consuming countries.
The pioneering positions taken by the Kingdom to maintain the
stability of oil prices embody its sincere desire for the market
stability, the balance between supply and demand and continuity of
oil flow safely to consumers.

The third summit of leaders of OPEC meeting in Riyadh in November
2008, the next meeting of ministers of energy of oil producing and
consuming countries to be held under the auspices of the Custodian of
the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud in Jeddah on
Sunday, June 22, 2008 and the Kingdom's hosting of the headquarters
of the Secretariat General of the International Energy Forum
demonstrate vivid evidence of the Kingdom's keenness on the interests
of producing and importing oil countries, its continuing pursuit of
the stability of the global market despite its belief that the price
of oil is set by the various market factors of supply and demand, the
level of commercial stocks in consuming countries and the impact of
political turmoil and behavior of speculators on the oil market.
In its meeting last Monday, the Saudi cabinet expressed its
appreciation for the global welcome, rapid response and willingness
to participate in Jeddah meeting of energy ministers of producers and
consumers on June 22.

35 countries will participate in the meeting at the level of
premiers, oil ministers and senior officials of member states of the
Organization of Petroleum Exporting Countries (OPEC) and non- OPEC
producing countries including Russia, Kingdom of Norway, Mexico and
Brazil in addition to the major consuming countries including the
United States of America, Britain, Germany, France, Japan, China,
India, South Africa, and others, along with representatives of more
than 25 international oil companies, and seven international
organizations including the General Secretariat of the Energy Forum,
OPEC, the International Energy Agency, the European Commission of
Energy and International Monetary Fund.

It is scheduled that this meeting will discuss the situation of
international oil market, the current rise in oil prices, and how oil
producing and consuming countries, relevant international
organizations and main oil companies cooperate to deal with this
phenomenon, which is unjustifiable, and to propose appropriate
solutions to deal with it.

The meeting's agenda will be opened by a speech ceremony in which the
Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud
will deliver a speech on this occasion as well as British Prime
Minister Gordon Brown followed by a closed meeting of the
participants.

After the meeting, the Minister of Petroleum and Mineral Resources
Ali Al-Naimi will hold a press conference with the participation of
Prince Abdulaziz bin Salman bin Abdulaziz, Assistant Minister of
Petroleum and Mineral Resources for Petroleum Affairs who is also the
head of the preparatory committee for the meeting, the Executive
Director of the International Energy Agency Nu Bao Tanaka, Secretary
General of OPEC Abdullah Salem Al-Badri and the Secretary General of
the International Energy Forum, New Hollis.

On the following day of the meeting, media men participating in the
media coverage of the meeting will visit project of expansion and
development of Khurais plant, with a producing capacity of 1.2
million barrels per day of crude oil making it the largest expansion
project for the production of crude oil in the history of the
Kingdom, and one of the largest projects implemented at the world
level which is expected to be accomplished in the middle of 2009.

During the 3d OPEC Summit, the Custodian of the Two Holy Mosques King
Abdullah bin Abdulaziz Al Saud said in his speech that the oil energy
is for construction and development and must not be transformed into
a means of conflicts and caprices.

The King announced at the conclusion of his speech the Kingdom's
allocation of $ 300 million for a programme to finance scientific
researches related to energy, environment and climate change,
expressing his hope that producing and consuming countries will
contribute to similar programmes to achieve accurate results ensuring
the safety of the environment and meeting the increasing needs for
oil.

In an interview with Spanish newspaper ABC published on Wednesday
June 4, 2008 on the occasion of his visit to Spain, Crown Prince
Sultan bin Abdulaziz Al Saud, Deputy Premier, Minister of Defense and
Aviation and Inspector General said that the price of oil is set by
various market factors of supply and demand, and the level of
commercial stocks in consuming countries, noting that the price of
oil is affected by political turmoil, the international financial
market conditions and policies of the consuming countries. He pointed
to another factor of speculators' behavior which has negative and
clear effects necessitating that consuming countries should review
this aspect to reduce these fluctuations in prices.

The Crown Prince said, "The petroleum policy of Kingdom of Saudi
Arabia is based on taking into account the interests of exporting and
consuming countries, and we are always working for the stability of
the market, the balance between supply and demand, and the continuity
of safe flow of oil to the consumers. Any country, whatever might be
its producing capacity, can not have the ability to determine the
price of oil as there are factors outside its control and
sovereignty", the Crown Prince added.

In the joint press conference which was held in conclusion of the
works of the 3d Summit of member States of OPEC in Riyadh on November
18, 2008, Prince Saud Al-Faisal, Minister of Foreign Affairs said
that the stability of world oil markets lies in the serious and
fruitful cooperation between producers and consumers.

He said, "The Government of Kingdom of Saudi Arabia has been keen on
activating this goal by hosting the Secretariat General of the
International Energy Forum in Riyadh to be as a link between
producers and consumers to enhance dialogue and joint cooperation".

On May 15, 2008, the Minister of Petroleum and Mineral Resources, Ali
bin Ibrahim Al-Naimi revealed that Kingdom of Saudi Arabia will
implement investment plans amounting to approximately $ 90 billion
during the next four years including increase in the production
capacity of oil and gas, as well as increase and improvement of
refining and processing facilities for projects inside the Kingdom
and abroad.

In his speech in the ceremony held by Seoul National University in
Republic of Korea on the occasion of granting him honorary PH.D.
degree, the Minister said that the plans include increasing of the
Kingdom's sustainable production capacity to 12,5 million barrels per
day by the end of 2009. - end. SPA