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refining, storage and petrochemical facilities in many countries of which: South Korea , Japan, Nether-lands and USA..

Reserves

The Kingdom follows a gas strategy aiming at inten-sifying and exploiting gas resources given the added value of the natural gas to the national economy and its contribution to the development and diversifica-tion of the sources of non-oil revenues.

The Kingdom has continued to develop its natural gas reserves and production capacity either through the investments of its national company Saudi Ara-mco, or by opening the investment field in the nat-ural gas sector before the global investments in all its processes of exploration, drilling, production and marketing. With the completion of Karan, Manifa, Arabia, and Al hasbbah fields, the gas processing capacity is expected to increase to reach 15 billion cubic feet in 2015.

Saudi Arabia has the fourth largest proven natural gas reserves in the world, estimated at 283 trillion cubic feet (4.3% of world), and comes fourth after Russia, Iran and Qatar. However, around 57 percent of Saudi Arabias proven natural gas reserves consist of as-sociated gas at the giant onshore Ghawar field and the offshore Safaniya and Zuluf fields. The Ghawar oil field alone accounts for approximately one-third of the countrys proven natural gas reserves.

To meet growing domestic needs, in November 2006, the Petroleum Ministry and Saudi Aramco an-nounced a $9-billion strategy to add 50 Tcf of non-associated gas reserves between 2006 and 2016 through new discoveries, and potentially another 50 Tcf of associated reserves.

Production

Despite sizable reserves and increasing demand, dry marketed natural gas production and consumption in Saudi Arabia remains limited (estimated at 8.1 Bcf in 2010). According to OPEC and other sources, an estimated 13 to 14 percent of total production is lost in flaring, wells reinjection and other processes.

Aramco focuses on increasing gas production to

meet the growing domestic demand for electricity, in addition to supporting the petrochemical industry to which the kingdom directs its attention, especially with the announcement of the establishment of a new petrochemical company under the name of Sa-dara in which Saudi Aramco and American Dow Chemical are partners.

Aramco constructs two major gas plants in Wasit and al-Shibah project for natural gas liquids, which is expected to be completed in 2014. It is expect-ed that the projects of Wasit, kharasania and Karan would help to achieve the Kingdom goal of increasing the unprocessed natural gas production from 10.2 billion cubic feet per day in 2010 to 15.5 billion cubic feet by 2015.

The Kingdom has recently launched a new gas net-work which produces, processes, and distributes gas and is able to supply the industrial city of Yanbu by about 15 million cubic feet per day of natural gas. The Electricity and Water facilities in Jubail and Yanbu (MARAFEK), owned by the Royal Authority in Jubail and Yanbu, the Saudi Arabia Basic Industries Cor-poration (SABIC), the Public Investment Fund and Saudi Aramco run the gas network so that its capac-ity would reach 55 million cubic feet per day.

Karan gas fieldThe majority of gas fields in Saudi Arabia is associ-ated with petroleum deposits, or found in the same wells as the crude oil, and plans to increase produc-tion of this type of gas remain linked to an increase in oil production.

In April 2006, the offshore Karan gas field was dis-covered in the water and it is the first free non-asso-ciated gas field. It is located 160 kilo meters north of Dhahran city in eastern Saudi Arabia. Aramco has developed it by investments totaled $3 billion. The

Eng. Khaled AL FalehCEO - SAUDI ARAMCO

field began production in July 2011 at 450 billion cu-bic feet per day. The gas is pumped into a 110 km pipeline below the water surface to deliver gas to Al Kharasania laboratory, and production is directed to power plants instead of oil. It is expected that the field would reach full production capacity of 1.8 billion cubic feet by 2013.

The cost of dry gas production is less than the its production cost when associated with oil; this will also save costs in its production and supply for its beneficiaries, and accordingly will contribute to pro-viding more of the oil used locally in the production of electricity and petrochemicals so as to promote oil exports in a better way than it was when Saudi Ara-bia was extracting it accompanied with oil.

Natural Gas Consumption

As for gas consumption within the Kingdom, the electricity and water desalination sectors, followed by petrochemicals, iron and steel industry, represent most of the demand for natural gas in the Kingdom. Aramco is currently boosting its natural gas produc-tion of gas to replace oil in power plants.

Saudi Arabia currently has many gas processing plants with a total gas production capacity of ap-proximately 9.3 Bcf/d, including 1.1 million bbl/d of

natural gas liquids (NGLs) and approximately 2,700 tons of sulfur at facilities Berri, Shedgum, Uthmani-yah and Hawiyah.

According to Saudi Aramco forecasts, natural gas demand in the kingdom is expected nearly to double to 14.5 billion cubic feet per day (Bcf/d) by 2030.

Transferring Oil and Products

Oil, gas and refined products are delivered to the plants, pumping and distribution stations within the Kingdom through a 20 thousand kilo meters network of pipelines owned by Saudi Aramco. The Saudi oil and refined products are transferred to the world and the local market by Vela International Marine Com-pany, a subsidiary of Saudi Aramco. In recent years, a group of tankers have been added to the company fleet which is currently composed of 30 large and medium-sized tanker.

A number of international and Arab companies par-ticipate in transferring crude oil and refined products to global markets, including the Saudi National Ship-ping Company and the Arab Maritime Petroleum Transport Company to which the Kingdom contribute in its ownership.

22 23OIL & GAS WORLD MAGAZINE www.mecei.org

Natural gas

SAUDI ARABIA

and Energy Services - ENERGY, in partnership with the private sector was established to do business including exploration, drilling, maintenance, seismic surveys, and the development of services provided to petroleum and petrochemical industries.

Reserves

The kingdom contains approximately 265 billion bar-rels of proven oil reserves (including 2.5 billion bar-rels in the Saudi-Kuwaiti shared Neutral Zone). The Kingdom accounts for 57% of the reserves of the Gulf Cooperation Council (GCC) and 29% of OPEC total reserves and 22% of the global reserves.

Around two-thirds of Saudi reserves are considered light, extra light or super light grades of oil, with the rest either medium or heavy. Although Saudi Arabia has around 100 major oil and gas fields (and more than 1,500 wells), over half of its oil reserves are contained in only eight fields, including the gi-ant 1260-square mile Ghawar (the worlds largest oil field, with estimated remaining reserves of 70 billion barrels) and Safaniya, including Khafji and Hout (the worlds largest offshore oil field, with estimated re-serves of 20 billion barrels).

The kingdom maintains such global position regard-ing the reserves through replacing the produced

quantities with new discoveries carried out by Saudi Aramco and its affiliates, together with construct-ing more pipelines, production facilities and treat-ment plants. The government takes into account the achievement of balance between its economic interests and cooperation with all oil producing and consuming countries, given its pivotal interest that oil remains the primary energy source.

Aramco continues the drilling of several developmen-tal and exploratory wells to increase oil and natural gas reserves in the coming years. The Petroleum Minister affirms the permanent quest of the company to increase its oil production capacity to meet the in-creasing global demand through the development of its fields pointing in this regard to the development of Khurais, Ibouhdria, Al Fadla, Al Kharasania and Al Shiba fields.

Production

Saudi Arabia maintains the worlds largest crude oil production capacity, estimated at 12 million b/d with its rising production of about 10 million b/d of oil, (including its share in Neutral Zones production of 600,000 b/d) and comprising crude oil, lease con-densate, natural gas liquids, and other liquids.

Saudi Arabia produces a range of crudes and mostly light crudes produced onshore, while medium and heavy grades come mainly from offshore fields. Most Saudi oil production, except for extra light and su-

per light, is considered sour, containing relatively high levels of sulfur.

The Kingdom lands contain a set of giant oil fields; Al Ghawar field is the largest in the world. It pumps oil since 1951 with a total cumulative production of about 66 billion barrels. Aramco pumps more than 5 million b/d from this giant field; a rate which exceeds more than half of the kingdom crude production. Ara-mco plans to inject 40 million cubic feet daily of car-bon dioxide into the field to raise its pressure; so as to increase and speed the flow rate.

The Kingdom shoulders the responsibility of secur-ing the flow of oil supplies to the world at all circum-stances. Therefore, during the recent disturbances in Libya, Saudi Arabia has mixed some of its oils to form an exceptional mixture similar to the Libyan oil and raised its production to meet the customers de-mand. Again the kingdom had raised its production to cover the lack of Iran exports to the market.

Local consumption

Saudi Arabia is the fastest growing consumer of en-ergy in the Middle East, particularly in the area of transportation fuels. Total energy consumption including natural gas and its liquids is expected to continue its increase with nearly 7% per annum to reach 5.2 million in 2014. In view of oil consumption alone, it has grown steadily and is expected to rise to 2.3 million in 2014. Refined

products are sold in the Kingdom at prices much lower than what they are in the global and neigh-bouring markets. This comes as part of the governmental sup-porting policy to the local con-sumer.

Domestic oil consumption grows rapidly and mostly depending on the rapid increase in electric-ity production and consumption (8% annually). Saudi Arabia al-locates about 800 thousand b/d of crude oil in summer months to feed electricity production. Sau-di Aramco sells oil to the Saudi Electricity Company at a very low price of 4.3 dollars a light oil bar-rel and 2.7 dollars for heavy oil, while the barrel is sold at about

$100 in the global market.

Domestic consumption of petroleum products is cur-rently estimated at 2 million barrels per day, or about 20% of the Kingdom production. This consumption grows by 7% per year, and is expected to reach about 3.7 million b/d in 2020 and about 7.3 million b/d in 2030. Observers fear that the growth of do-mestic consumption at this accelerated rate is at the expense of exports to the outside world, and they suggest the definition of legislations to rationalize fuel consumption and pump more investments in oil sec-tor.

Refining capacity The total refining capacity of Saudi Aramco from local and joint refineries has exceeded 4 million barrels per day, which are divided almost equally between the local and foreign refineries.There are plans to raise its local refining capacity to 3.5 million b/d by 2016, and this will raise the total re-fining capacity to about 6 million b/d in 2016. Aramco continues its efforts to upgrade its refineries to pro-duce larger quantities of high quality products. There-fore, refined products have witnessed a shift towards the higher-value light products.

Local Refineries- The Saudi Aramco Mobil Refinery Company Limited (SAMREF) in Yanbu on the west coast of the King-dom.- The Saudi Aramco Shell Refinery Co., Ltd. (SAS-REF) in Jubail on the east coast of the Kingdom.- Saudi Aramco Company for Refining Lubricating Oil, (Luberef 1) in Jeddah and (Luberef 2) in Yanbu- Rabigh Company for Refining and Petrochemicals (Petro Rabigh), which is considered the largest inte-grated facility for the petrochemicals production and oil refining as well.- Yanbu Export Refinery (YERP) in Yanbu (under con-struction)- Saudi Aramco Total Refining and Petrochemical Company in Jubail Industrial City- Royal Authority in Yanbu is currently implementing a project of the Red Sea refinery to produce petroleum products directed towards the petrochemical indus-try.

Shared facilities abroad

Through its affiliates, Saudi Aramco has stakes in


Oil Sector

SAUDI ARABIA

Major companies

In November 1988, the Saudi Arabian Oil Compa-ny (Saudi Aramco) was established to take over the administrative and operational tasks undertaken by Aramco. At the beginning of 2000 Saudi Aramco es-tablished Aramco Gulf Operations Limited Company (AGOC) in Al Khafji city to take over the completion of work within the concession of the Arabian Oil Com-pany offshore neutral area between Saudi Arabia and Kuwait. The company formed a joint venture with Ku-wait National Petroleum Company under the name of Khafji joint Operations Company (KJOC) to take over the management of oil and gas resources in the neutral offshore area.

As for the onshore divided area between Saudi Ara-bia and Kuwait, Saudi Arabian Chevron Company takes over the management of the Kingdoms share in onshore neutral zone, while the Gulf Oil Company takes over the management of the Kuwaiti share of it.

Energy projects

The Petroleum and Mineral Resources Minister Dr. Ali Al-Naimi said that Saudi Arabia is committed to

providing energy to the world, and therefore it imple-ments projects with massive investments over the coming years in various oil industry stages. Besides, it focuses on researches aiming at achieving sustain-ability and which include alternative energy sources that contribute to energy security. Therefore, the Kingdom will spend SR500 billion on energy projects during the period 2012 - 2016.

Most of the investments will come from two compa-nies: Saudi Aramco and the Saudi Basic Industries Corporation (SABIC). Both companies intend to in-crease their investments in manufacturing industries and focus on manufacturing specialized chemical materials rather than basic petrochemicals, as chem-icals generate higher income if compared to petro-chemicals and provide more job opportunities.

In the field of natural gas, there are large investments and the largest in the world. The future projects will raise the coming amounts of feedstock to gas plants from 9 to 15 billion cubic feet per day. The private sector contributes to investing in energy projects in the Kingdom where the Manufacturing

Saudi Arabias econ-omy remains heavily dependent on oil and petroleum-related in-dustries, including pet-rochemicals and petro-leum refining.

The oil export revenues represent about 90% of the total exports value, 80% of the government revenues and about 50% of the gross domestic product (GDP).

Given the great contribution of the oil sector to the revenues of the public treasury, the oil price is an im-portant variable in the vitality of the Saudi economy. The IMF expects the average oil price to range within $115 a barrel in 2012.

The Kingdom has a future vision for the petroleum sector which aims at creating a highly efficient oil in-dustry, a developed refining industry in line with the potentials and the position of the Kingdom, a com-prehensive national network covering the Kingdom areas in order to transfer all energy products, a major and comprehensive role of the private sector, tech-nology transfer and indigenization, and making the Kingdom a global energy research and studies center in the area.

The kingdom is following wise, balanced and flexible policy in handling the countrys interests in a way that does not harm the interests of world oil markets. And the recent attitudes of the Saudi government empha-size the Kingdoms keenness on achieving balance in oil markets at all circumstances.

Supervision of the oil sector

The state-owned oil company, Saudi Aramco, domi-nates Saudi Arabias hydrocarbon sector operations. Saudi Aramco is the worlds largest oil company in terms of proved reserves and production of hydro-carbons.

Aramco adopts an innovative approach regarding the management of its local and international business, the perfect planning and implementation of its major petroleum projects and the optimum investment in all stages of its business full value system. Besides, it launches an ambitious program of research and technology development together with promoting its programs of protecting the environment.

The Ministry of Petroleum and Mineral Resources and the Supreme Council for Petroleum and Miner-als (SCPMA) directly supervise the oil sector and the Saudi Aramco Company. Affairs has been formed on 04.01.2000.

Under the chairmanship of the Custodian of the Two Holy Mosques, SCPMA has been formed in 2000 and consists of members of the royal family, indus-try leaders and ministers in the Saudi government. The Council takes decisions in all oil and gas affairs, approves their strategic policies including the identi-fication of production quantities, approves the differ-ent pricing plans of fuel sources and feedstock in the Kingdom, defining the general policy of Saudi Ara-mco together with deciding its work plan including its program of crude oil production and exploration and development of new hydrocarbon reserves and ap-proves the capital investments program. Moreover, the Council examines and approves the general min-ing policies, agreements and contracts.

SCPMA always confirms his keenness on the bal-ance and stability of the global oil market in a way which benefits the producing and consuming coun-tries in addition to his keenness on the growth of the global economy. He also stressed his commitment to the continuation of the OPEC countries role as a stabilizing factor in the market.

SAUDI ARABIA

HE Ali Al NaimiSuadi Petroleum Minister

A special file for:Saudi Oil and Gas Sector


Mohamed Hassan Salem - Head of Oil & Gas World MagazineEx Senior Economist in OAPEC

Major companies

In November 1988, the Saudi Arabian Oil Compa-ny (Saudi Aramco) was established to take over the administrative and operational tasks undertaken by Aramco. At the beginning of 2000 Saudi Aramco es-tablished Aramco Gulf Operations Limited Company (AGOC) in Al Khafji city to take over the completion of work within the concession of the Arabian Oil Com-pany offshore neutral area between Saudi Arabia and Kuwait. The company formed a joint venture with Ku-wait National Petroleum Company under the name of Khafji joint Operations Company (KJOC) to take over the management of oil and gas resources in the neutral offshore area.

As for the onshore divided area between Saudi Ara-bia and Kuwait, Saudi Arabian Chevron Company takes over the management of the Kingdoms share in onshore neutral zone, while the Gulf Oil Company takes over the management of the Kuwaiti share of it.

Energy projects

The Petroleum and Mineral Resources Minister Dr. Ali Al-Naimi said that Saudi Arabia is committed to

providing energy to the world, and therefore it imple-ments projects with massive investments over the coming years in various oil industry stages. Besides, it focuses on researches aiming at achieving sustain-ability and which include alternative energy sources that contribute to energy security. Therefore, the Kingdom will spend SR500 billion on energy projects during the period 2012 - 2016.

Most of the investments will come from two compa-nies: Saudi Aramco and the Saudi Basic Industries Corporation (SABIC). Both companies intend to in-crease their investments in manufacturing industries and focus on manufacturing specialized chemical materials rather than basic petrochemicals, as chem-icals generate higher income if compared to petro-chemicals and provide more job opportunities.

In the field of natural gas, there are large investments and the largest in the world. The future projects will raise the coming amounts of feedstock to gas plants from 9 to 15 billion cubic feet per day. The private sector contributes to investing in energy projects in the Kingdom where the Manufacturing

SaudiArabiasecon-omyremainsheavilydependentonoilandtherelatedindustries,includingpetrochemi-calsandpetroleum

Theoilexportrevenuesrepresent about 90%of the total exportsvalue, 80% of thegovernment revenuesand 50% of thegrossdomesticproduct(GDP).

Given thegreatcontributionof theoilsector to therevenuesofthepublictreasury,theoilpriceisavitalissuetotheSaudieconomy.TheIMFexpectstheaverageoilpricetorangewithin$115abarrelin2012.

TheKingdomhas a future vision for thepetroleum-

potentialsandthepositionoftheKingdom,acom-prehensive national network covering the Kingdomareasinordertotransferallenergyproducts,amajorandcomprehensive roleof theprivatesector, tech-nology transfer and indigenization, andmaking theKingdomaglobalenergyresearchandstudiescenterinthearea.

policyinhandlingthecountrysinterestsinawaythatdoesnotharmtheinterestsofworldoilmarkets.AndtherecentattitudesoftheSaudigovernmentempha-sizetheKingdomskeennessonachievingbalanceinoilmarketsatallcircumstances.

Supervision of the oil sector

Thestate-ownedoilcompany,SaudiAramco,domi-natesSaudiArabiashydrocarbonsectoroperations.SaudiAramco is theworlds largestoil company intermsofproved reservesandproductionofhydro-carbons.

Aramcoadoptsaninnovativeapproachregardingthemanagementof its localand internationalbusiness,theperfectplanningandimplementationofitsmajorpetroleum projects and the optimum investment inallstagesofitsbusinessfullvaluesystem.Besides,it launches an ambitious program of research andtechnologydevelopmenttogetherwithpromotingitsprogramsofprotectingtheenvironment.

The Ministry of Petroleum and Mineral ResourcesandtheSupremeCouncil forPetroleumandMiner-als(SCPMA)directlysupervisetheoilsectorandtheSaudiAramcoCompany.Affairshasbeenformedon04.01.2000.

UnderthechairmanshipoftheCustodianoftheTwoHoly Mosques, SCPMA has been formed in 2000andconsistsofmembersof theroyal family, indus-try leaders andministers in theSaudi government.TheCounciltakesdecisionsinalloilandgasaffairs,approvestheirstrategicpoliciesincludingtheidenti-

-entpricingplansoffuelsourcesandfeedstockinthe

-mcotogetherwithdecidingitsworkplanincludingitsprogramofcrudeoilproductionandexplorationanddevelopmentofnewhydrocarbonreservesandap-proves thecapital investments program.Moreover,theCouncilexaminesandapprovesthegeneralmin-ingpolicies,agreementsandcontracts.

-anceandstabilityof theglobaloilmarket inaway

-triesinadditiontohiskeennessonthegrowthoftheglobal economy.He also stressed his commitmenttothecontinuationoftheOPECcountriesroleasastabilizingfactorinthemarket.

SAUDI ARABIA

HE Ali Al NaimiSuadi Petroleum Minister

A special file for:Saudi Oil and Gas Sector


Mohamed Hassan Salem - Head of Oil & Gas World MagazineEx Senior Economist in OAPEC

The relationships between the two countries are old and distinct, and have characteristics and properties that confirm the depth of the formal and popular cor-relation between the two countries.

Over their long history, these relations have been characterized with the conformity of views on the vi-tal issues of concern to Arab and Islamic nations and which are based on the stability of attitudes and clar-ity of visions. This is confirmed by the mutual visits between the two countries both at the official level and at the popular level.

There are various areas of cooperation between the two countries; at the economic level the Egyptian la-bor plays an important role in the Kingdom. On the other hand, the Saudi investments in Egypt play a pivotal role since decades, and penetrated into most investment areas.

For many years Egypt and Saudi Arabia have strong ties in the cultural, media, technical, and educational fields. The relations between the two countries, in both formal and popular terms together with the feel-ings of friendship and mutual respect represent a liv-ing example of what the relations between the states should be.

KINGDOM OF SAUDI ARABIAAmid atmospheres of achieving tangible successes in general and distinguished achieving on all levels of oil and gas sector in particular, the Kingdom is celebrating its 82nd National Day.

Kingdom of Saudi ArabiaCelebrating its 82nd National Day

Egyptian-Saudi relationsLong History Full of Achievements

On the occasion of the Saudi Arabia 82nd Na-tional Day, the Arab Shipbuilding and Repair Yard (ASRY) raises thinner congratulations to the Custodian of the Two Holy Mosques King Abdullah bin Abdul Aziz and the Crown Prince Salman bin Abdul-Aziz and the princes and the Saudi people for the anniversary of this historic glorious day, wishing them all further progress and prosperity in various fields.

The staff of Oil and Gas World Magazine con-gratulates the Saudi Government and People for the anniversary of the 82nd National Day of the Kingdom. We also raise our congratulations to HE Ahmed Kattan the ambassador of Saudi Arabia in Egypt and the embassy members for this supreme occasion, wishing them all more prosperity and progress under the leadership of the Custodian of the Two Holy Mosques King Abdullah bin Abdul Aziz Al Saud.

Congratulations to the Holy Land with what it is blessed by God from the riches embraced by its blessed land and handled by safe hands with men having good intentions and were true in what they agreed with God on, and they were and still the servants of the pilgrims and a symbol of gen-erosity with every visitor to the land of the Kingdom and its pure lands, which is also storing in its subsoil energy resources that push the progress of civilization forward in the world, in addition to its embrace of the treasure of treasures the seal of messengers (Muhammad) peace be upon him, and therefore it will always remain in all hearts.

H.E. Ahmed KattanAmbassador of Saudi Arabia in Egypt


Arab Shipbuilding and Repair Yard (ASRY) - BAHRAIN Oil and Gas World Magazine - EGYPT

The relationships between the two countries are old and distinct, and have characteristics and properties that confirm the depth of the formal and popular cor-relation between the two countries.

Over their long history, these relations have been characterized with the conformity of views on the vi-tal issues of concern to Arab and Islamic nations and which are based on the stability of attitudes and clar-ity of visions. This is confirmed by the mutual visits between the two countries both at the official level and at the popular level.

There are various areas of cooperation between the two countries; at the economic level the Egyptian la-bor plays an important role in the Kingdom. On the other hand, the Saudi investments in Egypt play a pivotal role since decades, and penetrated into most investment areas.

For many years Egypt and Saudi Arabia have strong ties in the cultural, media, technical, and educational fields. The relations between the two countries, in both formal and popular terms together with the feel-ings of friendship and mutual respect represent a liv-ing example of what the relations between the states should be.

KINGDOM OF SAUDI ARABIAAmid atmospheres of achieving tangible successes in general and distinguished achieving on all levels of oil and gas sector in particular, the Kingdom is celebrating its 82nd National Day.

Saudi Arabia is celebrating its 82nd National Day in the twenty third of September 2012 amid atmospheres of achieving tan-gible successes, thanks to the wisdom of its leadership, the efforts and dedication of its people in all areas.

Kingdom of Saudi ArabiaCelebrating its 82nd National Day

Egyptian-Saudi relationsLong History Full of Achievements

On the occasion of the Saudi Arabia 82nd Na-tional Day, the Arab Shipbuilding and Repair Yard (ASRY) raises thinner congratulations to the Custodian of the Two Holy Mosques King Abdullah bin Abdul Aziz and the Crown Prince Salman bin Abdul-Aziz and the princes and the Saudi people for the anniversary of this historic glorious day, wishing them all further progress and prosperity in various fields.

The staff of Oil and Gas World Magazine con-gratulates the Saudi Government and People for the anniversary of the 82nd National Day of the Kingdom. We also raise our congratulations to HE Ahmed Kattan the ambassador of Saudi Arabia in Egypt and the embassy members for this supreme occasion, wishing them all more prosperity and progress under the leadership of the Custodian of the Two Holy Mosques King Abdullah bin Abdul Aziz Al Saud.

Congratulations to the Holy Land with what it is blessed by God from the riches embraced by its blessed land and handled by safe hands with men having good intentions and were true in what they agreed with God on, and they were and still the servants of the pilgrims and a symbol of gen-erosity with every visitor to the land of the Kingdom and its pure lands, which is also storing in its subsoil energy resources that push the progress of civilization forward in the world, in addition to its embrace of the treasure of treasures the seal of messengers (Muhammad) peace be upon him, and therefore it will always remain in all hearts.

H.E. Ahmed KattanAmbassador of Saudi Arabia in Egypt


Arab Shipbuilding and Repair Yard (ASRY) - BAHRAIN Oil and Gas World Magazine - EGYPT

reports for the various aspects of the subject.

Despite the importance of these reports, the impact of political guidance is noted in some of them in addi-tion to estrangement sometimes from objectivity, the presence of selective political and commercial goals behind the topic as well as environmental and social objectives.

This confirms the suspicions regarding the problem inflation and shouldering fossil fuels alone the respon-sibility for global warming, noting that there is a major undecided dispute about the causes of emissions:Are they the result of the economic growth and reli-ance on fossil fuels in power generation? Or are they the result of the constantly changing climate of the Earth over millions of years, and accordingly consid-ered a cosmic phenomenon called the climatic cy-cle?

Scientifically, the issue of global warming and climatic change is still surrounded by a lot of uncertainty and conflicting views on the causes of this phenomenon, the assumptions used in the analysis of the extent to which it can lead, as well as the absence of models accurately portraying the atmosphere movements.

There is still a scientific dispute about the timing, magnitude and patterns of the expected climate change, its distribution on the regions and the result-ing effects. The scientific report of the Intergovern-

mental Panel (IPCC) confirms the scientific uncer-tainty cases resulting from the incomplete knowledge about the greenhouse gases absorption mediums, in addition to the impact of clouds on the size of climate change, the impact of oceans on the timing and pat-terns of that change and the impact of icebergs on the expectations of higher seas and oceans levels as well as the presence of significant variation in esti-mating the benefits and the climatic changes costs and comparing them to the costs of dealing with or adapting to this change.

Many industrialized countries have decided targets in order to reduce the emissions of greenhouse gases only, namely carbon dioxide, and adopted some poli-cies to achieve those objectives, including measures to improve energy efficiency or diversify its sources. Some of those policies and procedures took a fi-nancial nature as the carbon tax, while others apply restrictions and encouragement. Attention has been focused on the first type of the policies while the oth-ers policies were neglected despite having an impact on the global energy markets.

Thus, the developing oil producing countries as well as those whose economies depend on a single source of revenues contributing to their development are the most affected by the application of the agree-ment and the Protocol, where the focus is on carbon dioxide only rather than the other gases.

As for the developments, the Organization Secre-tariat took part as an observer in the meetings of the Economic and Social Council at its regular 88th session held in the headquarters of the Arab League from 12 to 15 September, 2011. The meetings dis-cussed topics related to the joint Arab cooperation, the most notably of which is the following-up of the application of the resolutions of the Social and Eco-nomic Developmental Arab Summit held in Kuwait and Sharm Al-Sheikh, as well as the cooperation be-tween Arab organizations and associations related to the Arab League. The results reached in the natural gas field on the Arab cooperation level were reviewed during the 11th meeting of the Working Group re-sponsible for discussing the cooperation possibilities in the natural gas investment field, which was organ-ized by the OAPEC Secretariat in Cairo on 4th and 5th October, 2011.

OGWM: What is new in the energy policies of indus-trial countries, and its impact on the member coun-tries?

HE Abbas Naqi: This issue is divergent and anx-ious. As it is obvious to the issue observers, the oil, despite being a strategic material, is a commodity af-fected like any other commodity by supply and de-mand fluctuations in global markets, and is subject to the policies of the consuming countries in the energy field and the environmental policies to reduce the de-pendence on fossil fuels (and the focus here is on oil) by switching to the other energy sources like the re-newable ones available to them, with a focus on coal of which they have huge reserves, despite being one of the more polluting fuels to the environment.

Some states impose a carbon tax on their oil im-ports which results in reducing the oil demand. How-ever, all this cannot significantly affect the status of oil and gas in the global energy mix for many decades to come. As the oil demand will continue according to the various petroleum expectations, the core region to remain the main provider for the world of today and tomorrow with capacity able to be converted industrially and transported easily is the Arab region because it has at least 57% of the global oil reserves and about 30% of the global natural gas reserves. Thus, this region will be and will remain the main en-ergy supplier in the world in the future, despite the attempts aiming at making the OPEC countries and

the Arab region just a Residual Supplier for global demand.

As for our Member States, they will continue their mission as a major oil supplier for industrial and de-veloping countries. But this does not mean that they are satisfied with playing only this role; they have exerted and continue to exert great efforts to invest their oil revenues in developing their industrial and so-cial structures. Besides, they managed over the past decades to make a great quantum leap in switch-ing to modern civil societies despite the difficulties they face in the Arab development experience in gen-eral. Concerning the future plans, they must focus on converting the revenues and financial petroleum resources to contribute to economic and social de-velopment projects planned by all of our nations in order to become included among the states enjoy-ing sustainable development enough to ensure the development of their societies, and this is what we hope to be achieved in an atmosphere of stability and prosperity.

OGWM: The greenhouse gases are accelerating at rates greater than the expected, how can you see the distribution of the negative climatic changes re-sponsibility among the different energy sources, and what is the real stature of both types of oil - the con-ventional and unconventional - in that responsibility?

HE Abbas Naqi: With respect to the emissions from the greenhouse gases, the Intergovernmental Panel concerned with the Climate Change (IPCC), since its establishment, has issued four assessment

OAPEC


Oil and Gas World Magazine (OGWM): OAPEC held several Arab energy conferences under the ban-ner of Energy and Arab Cooperation, the most re-cent conference was the Ninth Conference in Doha in May 2010. Kindly clarify the orientations of the next conference, its banner, date and place.

HE Abbas Naqi, the Secretary General of OAPEC: First, I would like to thank you for your interest in the Arab petroleum issues, and I values your efforts to handle the knowledge of energy field in general and oil and gas in particular together with your perseverance to follow up the issues of that field, either through your rich website in the Internet, or the pages of your magazine Oil and Gas World.

It is a pleasure for me to answer your questions and contribute, from my part, to spreading petroleum knowledge and culture which we all find ourselves, whether officials in the petroleum sector, students of the oil different aspects, or the readership, in a dire need for getting more information of it.

As for the Tenth Arab Energy Conference, its place was decided in its ninth session, in Doha, the capital of Qatar from 9 to 12 May, 2010, after the conference has responded to the invitation of His Excellency the Lebanese Energy and Electricity Minister that his country hosts the activities of the Tenth Conference. The Tenth Conference will be held, God willing, in 2014 in Beirut, which witnessed the birth of the Or-ganization in 1968, under the same title agreed upon at the Third Arab Energy Conference, Energy and Arab Cooperation, that held in Algeria in May 1985. This is the second time in which the conference is held in the capital of a non-member Arab country in the OAPEC. The first time was when the Eighth Con-ference was held in Amman in 2006. As you know, the Arab Energy Conference is held every four years.

OGWM: OAPEC plays a role in the Arab League through its previous participation in the meetings of the Higher Coordination Committee for Joint Arab Ac-tion, and in the sessions of the Economic and Social Council ... What are the latest developments regard-ing the energy and environmental issues discussed in these meetings and what is the role of OAPEC in addressing these issues?

HE Abbas Naqi: As you know, the Organization of Arab Petroleum Exporting Countries (OAPEC) is an autonomous regional organization and not affiliated

to any other Arab body or organization; it is governed by its establishment agreement and the protocol signed between it and the headquarters state. As one of the Joint Arab Cooperation Institutions, it has been keen, over its past four decades, on extending close coordinating relations with various Arab Coop-eration bodies, including the Arab Fund for Economic and Social Development, the Arab Monetary Fund and the Arab League with its various bodies, and is cooperating with them in the following several issues:

- Participating in the meetings of the Higher Coordi-nation Committee for Joint Arab Action.- Following up the work in the Greater Arab Free Trade region together with participating as an observer in the meetings of the Economic and Social Council. - As an observer, the Secretariat prepares the meet-ings of the Arab Ministers Council responsible for the Environment and its executive office. It adopts a uni-fied Arab stance regarding the energy issue and its relationship to the environment.

- The Secretariat contributes to the preparation of the Unified Arab Economic Report, in partnership with the Arab League, the Arab Monetary Fund, and the Arab Fund for Economic and Social Development. It prepares the chapter of Developments in the oil and energy field.

- Finally, cooperating and coordinating in the prepara-tion of the Arab Energy Conference which is prepared by both the Organization of Arab Petroleum Export-ing Countries and the Arab Fund for Economic and Social Development. The Arab League and the Arab Organization for Industrial Development and Mining take part in organizing the conference, as considered among the sponsors of the conference.

OAPECInterview with HE Abbas Ali Naqi

The Second Part of the Interview


Oil and Gas World Magazine (OGWM): OAPEC held several Arab energy conferences under the ban-ner of Energy and Arab Cooperation, the most re-cent conference was the Ninth Conference in Doha in May 2010. Kindly clarify the orientations of the next conference, its banner, date and place.

HE Abbas Naqi, the Secretary General of OAPEC: First, I would like to thank you for your interest in the Arab petroleum issues, and I values your efforts to handle the knowledge of energy field in general and oil and gas in particular together with your perseverance to follow up the issues of that field, either through your rich website in the Internet, or the pages of your magazine Oil and Gas World.

It is a pleasure for me to answer your questions and contribute, from my part, to spreading petroleum knowledge and culture which we all find ourselves, whether officials in the petroleum sector, students of the oil different aspects, or the readership, in a dire need for getting more information of it.

As for the Tenth Arab Energy Conference, its place was decided in its ninth session, in Doha, the capital of Qatar from 9 to 12 May, 2010, after the conference has responded to the invitation of His Excellency the Lebanese Energy and Electricity Minister that his country hosts the activities of the Tenth Conference. The Tenth Conference will be held, God willing, in 2014 in Beirut, which witnessed the birth of the Or-ganization in 1968, under the same title agreed upon at the Third Arab Energy Conference, Energy and Arab Cooperation, that held in Algeria in May 1985. This is the second time in which the conference is held in the capital of a non-member Arab country in the OAPEC. The first time was when the Eighth Con-ference was held in Amman in 2006. As you know, the Arab Energy Conference is held every four years.

OGWM: OAPEC plays a role in the Arab League through its previous participation in the meetings of the Higher Coordination Committee for Joint Arab Ac-tion, and in the sessions of the Economic and Social Council ... What are the latest developments regard-ing the energy and environmental issues discussed in these meetings and what is the role of OAPEC in addressing these issues?

HE Abbas Naqi: As you know, the Organization of Arab Petroleum Exporting Countries (OAPEC) is an autonomous regional organization and not affiliated

to any other Arab body or organization; it is governed by its establishment agreement and the protocol signed between it and the headquarters state. As one of the Joint Arab Cooperation Institutions, it has been keen, over its past four decades, on extending close coordinating relations with various Arab Coop-eration bodies, including the Arab Fund for Economic and Social Development, the Arab Monetary Fund and the Arab League with its various bodies, and is cooperating with them in the following several issues:

- Participating in the meetings of the Higher Coordi-nation Committee for Joint Arab Action.- Following up the work in the Greater Arab Free Trade region together with participating as an observer in the meetings of the Economic and Social Council. - As an observer, the Secretariat prepares the meet-ings of the Arab Ministers Council responsible for the Environment and its executive office. It adopts a uni-fied Arab stance regarding the energy issue and its relationship to the environment.

- The Secretariat contributes to the preparation of the Unified Arab Economic Report, in partnership with the Arab League, the Arab Monetary Fund, and the Arab Fund for Economic and Social Development. It prepares the chapter of Developments in the oil and energy field.

- Finally, cooperating and coordinating in the prepara-tion of the Arab Energy Conference which is prepared by both the Organization of Arab Petroleum Export-ing Countries and the Arab Fund for Economic and Social Development. The Arab League and the Arab Organization for Industrial Development and Mining take part in organizing the conference, as considered among the sponsors of the conference.

OAPECInterview with HE Abbas Ali Naqi

In this issue, the Oil and Gas World Magazine completes the second part of the interview with His Excellency Abbas Ali Naqi, the Secretary General of the Organization of Arab Petro-leum Exporting Countries.

The Second Part of the Interview


Society of Petroleum Engineers

SPE North Africa Technical Conference and Exhibition (NATC)

Call for Papers

1517 April 2013InterContinental Citystars, Cairo, Egypt

Submit a paper proposal and stand a chance to present your technical knowledge and achievements at 2013 NATC.

To submit your proposal before 6 September 2012, visit www.spe.org/events/natc

Under the Patronage of the Ministry of Petroleum and Mineral Resources, Egypt

With the theme A Paradigm Shift in the Oil and Gas Industry of an Evolving Region

the primary technical categories include:

Exploration

Formation Evaluation

Field Development

Asset Integrity

Facilities

Petroleum Economics

Unitisation, Reserves Assessment, and Co-Sharing Fields

Reservoir Management

Drilling

Well Completions and Optimisation

Production

Gas Technology

HSSE

Human Resources Management

The 2013 SPE North Africa Technical Conference and Exhibition (NATC) is the fourth edition of this mul-ti-disciplinary event.

NATC is an international platform to discuss and share industry knowledge, best practices, and latest technical applications pertaining to the current issues within the oil and gas industry in North Africa.

Worldwide oil and gas professionals, with a wealth of oil field experience, will be attending this renowned event to gain an insight on the latest technical and economic challenges faced in North Africa and to ex-plore the opportunities available in this area.

Exhibiting at NATCExhibiting at NATC offers you the opportunity to in-teract with a selected audience gathered to attend the event from around the globe, demonstrate your companys advanced technologies and expertise, in-crease your brand awareness, and develop projects for the Middle East markets.

In addition, you will: Network with decision makers from North Africa and the Middle East Benefit from the expected investments in explo-ration and development of the oil and gas fields in Egypt and the region Meet international and regional experts, research-ers and industry professionals and forge new busi-ness relationships Engage with foreign companies in Egypt and North Africa who aim to escalate their operations to meet the increasing domestic energy demand Source new partners from North Africa and the Mid-dle East and make new business deals on the spot Enhance your visibility by showcasing your prod-ucts and services in this highly competitive and lucra-tive region Showcase your companys expertise with a fo-cused international audience of professionals Monitor the latest technologies introduced by other industry giants Benefit from the marketing and PR campaign for the event

There are various sponsorship and exhibition stand packages available for NATC.To find out more, log on to www.spe.org/events/natc or contact Taghreed Khallaf at [email protected] or call +971.4.457.5800.

Plan to attend!Dear Industry Colleague,You are invited to participate in the fourth SPE North Africa Technical Conference and Exhibition (NATC) to be held 1517 April 2013 at the InterContinental City-stars Hotel in Cairo, Egypt

Over the years, NATC has proven to be a highly suc-cessful event that provides a platform for technical knowledge exchange amongst E&P professionals and creates unmatched learning and networking op-portunities for all attendees. The 2013 edition of the event will integrate the theme A Paradigm Shift in the Oil and Gas Industry of an Evolving Region which will consider the latest devel-opments in North Africa and how they present unique challenges and opportunities to companies operating in the region.

Join the 2013 NATC to share your expertise, expe-rience, and best practices with other professionals, experts, and researchers in the industry.

Technical Categories for PapersSubmit your paper proposals before 6 September 2012 on any of the following categories:[ Exploration-Formation Evaluation-Field Develop-ment-Asset Integrity-Facilities-Petroleum Economics-Unitisation, Reserves Assessment, and Co-Sharing Fields-Reservoir Management-Drilling-Well Comple-tions and Optimisation-Production-Gas Technology-HSSE-Human Resources Management ]

Paper Proposal Submission Deadline is 6 Sep-tember 2012Authors are strongly encouraged to submit their pa-per proposals electronically at SPE website To find out more, log on to www.spe.org/events/natc or contact Mohamed Aamer at [email protected] or call +971.4.457.5800.

SPE North Africa TechnicalConference and Exhibition (NATC)

A Paradigm Shift in Oil and Gas Industry of an Evolving Region

Society of Petroleum Engineers

SPE North Africa Technical Conference and Exhibition (NATC)

Call for Papers

1517 April 2013InterContinental Citystars, Cairo, Egypt

Submit a paper proposal and stand a chance to present your technical knowledge and achievements at 2013 NATC.

To submit your proposal before 6 September 2012, visit www.spe.org/events/natc

Under the Patronage of the Ministry of Petroleum and Mineral Resources, Egypt

With the theme A Paradigm Shift in the Oil and Gas Industry of an Evolving Region

the primary technical categories include:

Exploration

Formation Evaluation

Field Development

Asset Integrity

Facilities

Petroleum Economics

Unitisation, Reserves Assessment, and Co-Sharing Fields

Reservoir Management

Drilling

Well Completions and Optimisation

Production

Gas Technology

HSSE

Human Resources Management

The 2013 SPE North

oil & gas world magazine

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