Saudis to boost output capacity to 12.5 million b/d by 2009:Naimi

Washington (Platts)--2May2006

Current world crude oil prices are "not in the interest of either Saudi
Arabia or the US, Saudi Oil Minister Ali Naimi said in prepared remarks to the
Center for Strategic and International Studies Tuesday.

"As President Bush and King Abdullah affirmed last year at their meeting
in Crawford (Texas), our common goal is an oil price level that protects
consumers while at the same time ensuring adequate investment," he said.

Naimi said that consensus among producers and consumers on what he called
the "politically senstitive" issues of prices and energy security "remains
elusive."

Naimi also reiterated that Saudi Arabia is committed to boosting its oil
production capacity to 12.5 million b/d by the year 2009, with the potential
for further boosts, if market conditions warrant.

"This expansion will make a significant contribution to meeting the
world's increasing needs for energy," Naimi said. He said the kingdom was
committed to maintaining its policy of of holding 1.5 to 2 million b/d in
spare capacity.

--Cathy Landry, cathy_landry@platts.com

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