With one-quarter of the world's proven oil reserves, Saudi Arabia is expected to retain its rank as the world's largest oil producer for the foreseeable future. It is an important source of crude oil imports for the United States, supplying over 14% of U.S. crude oil imports in the first 9 months of 1997.

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GENERAL BACKGROUND
Saudi Arabia's economy performed generally well in 1997, with 4.5% real growth in Gross Domestic Product (GDP) and low inflation. Estimates for the 1997 current account range from a surplus of $200 million to a deficit of $1.4 billion (fluctuations in oil prices can quickly and dramatically change Saudi Arabia's trade balance). In 1998, the Saudi economy could be adversely affected if the drop in oil prices which began in late 1997 continues. Latest forecasts vary, but in the case of continued low oil prices expectations are that real GDP growth could fall below 1.5% in 1998, while the current account is expected to move sharply into deficit (between $3 and $9.5 billion, or 2%-7.5% of GDP). On the other hand, increased oil export volumes stemming from an increase in Saudi Arabia's OPEC oil production quota will help to offset weaker oil prices. Also, petrochemical projects aimed at the export market are expected to come online in 1998. This should help the Saudi trade balance. In late December 1997 the Saudi government announced an expansionary budget plan for 1998.

Despite periodic efforts to diversify, Saudi Arabia's economy is essentially oil-based (although investments in petrochemicals have increased the relative importance of the downstream petroleum sector in recent years). In 1997, 88% of Saudi Arabia's export revenues were derived from the sale of crude oil, natural gas liquids, and refined products. The Saudi economy appears largely to have recovered from the hardships experienced as a result of the 1991 Persian Gulf war, for which the Kingdom incurred a $55 billion debt (repaid as of May 1995).

As part of a strategy aimed at increasing integration into the world economy, Saudi Arabia has applied for membership in the World Trade Organization (WTO). In order to gain acceptance into the WTO, Saudi Arabia will need to cut tariffs, which is complicated by the Saudi commitment to a common Gulf Cooperation Council (GCC) tariff and customs union, which despite 14 years of negotiation are still not in place.

Saudi Arabia's government officially (in its 1995-1999 development plan) has accepted the need to reduce state involvement and increase private sector (including foreign) participation in the economy. The government is likely to move slowly, however, towards any major economic reforms (cuts in subsidies, increases in taxes, privatization, financial sector reform) due to concerns over the possible social unrest which such moves could entail. Saudi Arabia has a policy known as "Saudiisation," the goal of which is to increase employment of its own citizens by replacing 60% of the estimated 5-6 million foreign workers in the country. In order to do so, Saudi Arabia has stopped issuing work visas for certain jobs, has moved to increase training for Saudi nationals, and has set minimum requirement for the hiring of Saudi nationals by private companies.

In recent months, tensions between the United Nations and Saudi Arabia's neighbor Iraq have increased dramatically. On February 3, 1998, U.S. Secretary of State Madeleine Albright visited Saudi Arabia in order to discuss Saudi support for possible U.S. military actions regarding Iraq's failure to comply fully with U.N. Security Council resolutions ending the 1991 Gulf War.

In December 1997, Saudi Crown Prince Abdullah attended the Islamic summit in Tehran and met with Iranian leaders (including President Khatami and spiritual leader Ayotollah Khamenei). In a sign of improving bilateral ties, Abdullah was the highest ranking Saudi official to visit Iran in nearly 20 years. In November 1997, Saudi Arabia and most other Arab countries boycotted a U.S.-backed regional economic conference in Doha, Qatar to protest Israel's presence at the meeting.

In November 1997, Saudi and Yemeni troops clashed on their disputed border, much of which remains undefined. Yemen has contested Saudi Arabia's claim to parts of the Empty Quarter (Rub al-Khali), a vast desert region believed to be rich in oil resources. Yemen also has been frustrated by a perceived lack of progress in border talks and has suggested that it would seek international arbitration. In October 1997, Yemen's President Ali Abdallah Saleh stated that negotiations to settle the border dispute were in their final stages. Saudi-Yemeni relations have been strained since the 1990-91 Gulf crisis, during which Yemen was supportive of Iraq. In retaliation, Saudi Arabia expelled 850,000 Yemeni workers.

Terrorist attacks directed at U.S. targets provide periodic reminders of simmering discontent within Saudi Arabia. The most recent, in June 1996, killed 19 U.S. servicemen at a military housing complex (Khobar Towers) and led to the relocation of U.S. personnel to remote areas. The attack, and its investigation, strained U.S.-Saudi relations amid criticisms over the handling of an earlier attack, in November 1995, at the Saudi National Guard Training Center in Riyadh. Those charged with the Riyadh attack -- which killed seven people, including five Americans -- were tried and executed before they could be interrogated by U.S. investigators.

OIL
Saudi Arabia contains 261.5 billion barrels of proven oil reserves (more than one-fourth of the world total) and up to 1 trillion barrels of oil in place. Saudi Arabia is the world's leading oil producer, exporter, and holder of spare oil production capacity. Saudi Arabia's location in the politically volatile Persian Gulf region adds an element of concern for its major customers. Many, including the United States, are among its strongest political allies. According to Saudi Oil Minister Ali Naimi, Saudi Arabia's oil policy currently focuses on maximizing revenues, increasing Saudi market share, and maintaining international oil market stability. At OPEC's November 1997 meeting, Saudi Arabia's crude oil production quota was raised about 10%, from 8 million bbl/d to 8.76 million bbl/d. As of early February 1998, Saudi Arabia reportedly was producing close to this amount.

Although Saudi Arabia has about 77 oil and gas fields, over half of its oil reserves are contained in only eight fields, including Ghawar (the world's largest onshore oil field, with estimated remaining reserves of 70 billion barrels) and Safaniya (the world's largest offshore field, with estimated reserves of 19 billion barrels). Ghawar's main producing structures are, from north to south: Ain Dar, Shedgum, Uthmaniyah, Farzan, Ghawar, Al Udayliyah, Hawiyah, and Haradh. Overall, Ghawar alone accounts for about half of Saudi Arabia's total oil production capacity. Saudi Arabia has fewer than 1,430 wells, which is extremely low relative to the volume of oil the country produces.

Saudi Arabia produces a range of crude oil grades, from heavy to super light. The lightest grades are produced onshore, while the medium and heavy grades come mainly from offshore. The Ghawar field is the primary producer of 34^o API Arabian Light crude, while Abqaiq (a super-giant field with 17 billion barrels of proven reserves) produces 37^o API Arab Extra Light crude. Since 1994, the Hawtah Trend (also called the Najd fields), which includes the Hawtah field and smaller satellites (Nuayyim, Hazmiyah) located south of Riyadh, has been producing around 200,000 bbl/d of 45^o-50^o API, 0.06% sulphur, Arab Super Light. Overall, the Najd fields are estimated to contain 30 billion barrels of liquids and major reserves of natural gas. Offshore production includes Arab Medium crude from the Zuluf (over 500,000 bbl/d capacity) and Marjan (270,000 bbl/d capacity) fields and Arab Heavy crude from the Safaniya field.

A major boost to Arabian Light production capacity has come from a 520,000 bbl/d expansion at Hawiyah, which is rich in natural gas and condensates. Also, a 300,000 bbl/d Gas-Oil Separation Plant (GOSP) was completed at Haradh in late 1995, with a second 300,000 bbl/d GOSP to be installed in the next year or two. As more Arabian Light is produced, plans are to shut in some of the heavy oil being produced in Ghawar. In general, Saudi Arabia has pursued a strategy in recent years of reducing medium and heavy oil production in favor of lighter crudes.

The Saudi-Kuwaiti Neutral Zone contains about 5 billion barrels of proven oil reserves. Within the Neutral Zone, Japan's Arabian Oil Co. (AOC) operates the offshore fields (Khafji, Hout), with production capacity of about 350,000 bbl/d. Texaco operates the onshore fields (Wafra, South Fawaris, South Umm Gudair), with current crude oil production of more than 200,000 bbl/d. During 1998, Texaco plans to increase output from its fields and also to drill three exploration wells in the Neutral Zone. AOC's concession on the Saudi side expires in 2000 (an extension has been requested), and on the Kuwait side in 2003. Texaco's onshore concession lasts until 2010.

Saudi Arabia is a key oil supplier for the United States, Europe, and Japan; however, in recent years, western hemisphere producers (Venezuela, Canada, and Mexico) have challenged Saudi Arabia's dominance in the U.S. market. The Asian market now takes about 60% of Saudi Arabia's crude oil exports, as well as the majority of its petroleum product exports. Europe is Saudi Arabia's second largest oil export market, followed by the United States.

In order to maximize its oil revenues without violating its OPEC quota (currently 8.76 million bbl/d of crude), Saudi Arabia has increased Extra Light and Arab Super Light production at the expense of Arab Heavy and Arab Medium crude oil. Although some capacity has been shut in, Saudi Arabia is also using field rotations to minimize reservoir pressure damage and preserve the option of bringing the capacity back online within a few months, if needed. Most of Saudi Arabia's spare production capacity is medium crude.

Saudi Arabia's oil production totaled about 9.3 million bbl/d in 1997, including 800,000 bbl/d of natural gas liquids and about 270,000 bbl/d of crude oil produced from its half-share of the Saudi-Kuwaiti Neutral Zone. This compares with sustainable crude oil production capacity of about 11.3 million bbl/d and an OPEC crude oil production quota of 8 million bbl/d (8.76 million bbl/d as of January 1, 1998). Thus, Saudi Arabia has been producing close to its OPEC quota (production of natural gas liquids is not counted against the OPEC quota), but about 2 million bbl/d below its capacity. Of Saudi Arabia's total oil production capacity, about 18% is considered medium-gravity, 14% million bbl/d heavy, and the remaining 68% light.

Despite its 2 million bbl/d of spare production capacity (the largest in the world), Saudi Arabia is continuing to invest in the development of lighter crude reserves. Priority is currently being given to developing the Shaybah field in the remote Empty Quarter area bordering the United Arab Emirates. The field contains an estimated 7 billion barrels of 40-42^o API sweet crude oil, and will ultimately produce 500,000 bbl/d of crude oil and 870 million cubic feet/day of natural gas. Construction work on the field is scheduled for completion by mid-1998. Overall, the project will cost $2-$2.5 billion, and will include three gas/oil separation plants (GOSPs) and a 395-mile pipeline to connect the field to Abqaiq, Saudi Arabia's closest gathering center, for blending with Arabian Extra Light crude. Two U.S. companies are playing a major role in the project: Parsons Corporation (project management) and Bechtel (construction).

Downstream Infrastructure
Most of Saudi Arabia's crude oil is exported via the Persian Gulf through the Abqaiq processing facility. In the Persian Gulf, the Kingdom's primary oil export terminals are located at Ras Tanura (5 million bbl/d capacity) and Juaymah (3 million bbl/d). In addition, the Yanbu terminal (3 million bbl/d) serves as the main oil port in the Red Sea.

Saudi Arabia operates two major oil pipelines. The 4.8 million bbl/d East-West Crude Oil Pipeline (Petroline) is used mainly to transport Arabian Light and Super Light to refineries in the Western Province and to Red Sea terminals for direct export to European markets. Running parallel to the Petroline is the 270,000 bbl/d Abqaiq-Yanbu natural gas liquids pipeline, which serves Yanbu's petrochemical facilities. The Trans-Arabian Pipeline (Tapline) was mothballed following the Persian Gulf War (after providing only limited service to a refiner in Jordan since the 1970s), and the 1.65 million bbl/d Iraqi-Saudi Pipeline (IPSA-2) was closed indefinitely after the start of the Gulf War.

To solidify its market dominance and to meet market fluctuations, Saudi Arabia has attempted to boost its export capabilities by acquiring new tankers and increasing its overseas crude oil storage capacities. The Saudi fleet currently comprises 23 crude tankers and four product vessels. Saudi Arabia's owned and leased storage facilities, including a 34% stake in Texaco's 17 million barrel Maatschap terminal and a long-term lease on a 5 million barrel facility on St. Eustatius in the Caribbean, had a capacity of over 30 million barrels as of early 1997.

Refining
Saudi Arabia currently is investing in refinery upgrades and expansions. Nearing completion is a $1.2 billion upgrade of the Ras Tanura refinery, whose capacity may be further expanded to as much as 1 million bbl/d under longer-term investment plans (through 2007). In December 1997, Foster Wheeler signed a $70 million contract for upgrading the 315,000 bbl/d Jubail refinery. Also slated for upgrading is the Rabigh refinery, on the Red Sea coast, which had formerly been a joint venture (Amoco acquired Greece-based Petrola's 50 percent share in 1995). Plans call for boosting capacity to 325,000 bbl/d at an estimated cost of $2 billion.

Saudi Arabia has taken aggressive measures to secure market share for its crude oil through refining ventures in the United States, Europe, and Asia. The country took the first step in this direction in 1988, when it acquired a 50% stake in Texaco's Star Enterprise joint venture. Star Enterprise controls distribution networks in half of the United States and has continuing contracts to purchase up to 600,000 bbl/d of Saudi crude oil for processing at the venture's three refineries. As of late 1997, Star was being merged with Shell and Texaco to create the largest downstream entity in North America. The newly combined company will have $13 billion in assets, 13 refineries, and 22,000 retail outlets. According to Texaco's senior vice president, it will account for 13% of U.S. refining capacity and 15% of the U.S. gasoline market beginning in the first quarter of 1998.

Despite recent economic problems in East Asia, Saudi Arabia continues to look to that region for expansion of its downstream oil investments. Saudi Aramco's ambitious, $3 billion, expansion plan in the Philippines, for instance, appears on track. Saudi Aramco and Filipino company Petron (in which Saudi Aramco has a 40% stake) are planning a 250,000 bbl/d refinery, and are considering a 165,000 bbl/d grassroots refinery in Limay, Bataan. Besides the Philippines, Saudi Arabia is negotiating new refining joint ventures in China (an oil refinery and petrochemical complex in Fujian province) and other countries "east of Suez." One possible project is a grassroots refinery in East Java, Indonesia. The proposed refinery would have a capacity of 150,000 bbl/d and would include advanced processes such as atmospheric residue desulphurisation and residue catalytic cracking.

Saudi Basic Industries Corporation (SABIC) accounts for 5% of world petrochemical production. Reduced tariff barriers for petrochemical exports by SABIC are a major motivation behind Saudi Arabia's pursuit of membership in the World Trade Organization. In February 1997, Saudi Petrochemical Company (Sadaf), a joint venture between SABIC and Shell Oil Company of the United States, launched a $1 billion expansion program that includes a new 700,000 metric ton/year plant for methyl tertiary butyl ether (MTBE). The plant's opening boosts SABIC's total MTBE production capacity to 2.7 million metric tons/year. A large investment also was made in 1997 by the Saudi-Chevron Petrochemical Company, the first petrochemical company in Saudi Arabia to have no direct state participation.

In February 1998, South Korea's Daelim Engineering Co. agreed to build a chemical plant in al-Jubayl for $170 million. The plant will produce 500,000 tons of ethyl-benzene and styrene monomer beginning in March 2000. In January 1998, Japan's Chiyoda Corp. won a $500 million order from Saudi Arabia's Eastern Petrochemical Corp. to build an ethylene glycol plant in Saudi Arabia's Jubail Industrial area. The plant is to produce 500,000 tons per year, mainly for export to Southeast Asia. Another project, Yanpet II, is being developed by SABIC and Mobil's Yanbu Petrochemicals subsidiary. The $2.2-$2.5 billion project involves construction of a second 800,000-ton-per-year ethylene cracker, with capability to produce polyethylene and ethylene glycol. Yanpet II is expected to be completed in 2000.

NATURAL GAS
Saudi Arabia's natural gas reserves are estimated at 190.5 trillion cubic feet (Tcf). Most of these reserves consist of associated gas, which comes primarily from the Ghawar field and the offshore Safaniya and Zuluf fields. The Ghawar oil field alone accounts for one-third of the country's total gas reserves. Most new associated gas reserves discovered in the 1990s have been in fields which contain light crude oil, especially in the Najd region south of Riyadh. Most of Saudi Arabia's non-associated gas reserves are located in the deep Khuff reservoir, which underlies the Ghawar oil field, and which has been expanded steadily over the past decade. Another gas field, called Dorra, is located near the Khafji oil field in the Neutral Zone and may be developed by Japan's Arabian Oil Co., depending upon a feasibility study to be conducted in early 1998.

With domestic gas demand expected to grow as much as 8% per year through 2007, increasing gas production is a priority for the Saudi government. The gas will be used as feedstock for the growing petrochemical industry as well as for electricity generation. In addition, using gas domestically instead of oil could help free up 200,000-300,000 bbl/d of additional crude oil for export within the next two years. Oil Minister Naimi has made it clear that upstream participation by foreign energy companies in developing Saudi gas resources will not be permitted. Instead, Saudi Aramco will continue to carry out such work. Gas infrastructure work (drilling wells, laying pipelines, etc.), on the other hand, is "completely open to international companies," according to Naimi. Saudi Arabia hopes to add 5 Tcf of recoverable gas reserves each year.

Domestic demand is driving investment in Saudi Arabia's Master Gas System (MGS), which started up in 1982 (prior to that time, all of the country's natural gas was flared). In November 1996, a project management contract was signed with the Parsons Corporation (a U.S. company) for construction of a 1.4- Bcf-per-day gas processing plant at Hawiya. At an estimated cost of $2 billion, this is the largest gas project in more than 10 years, and is to be completed by 2001. The Parsons Corporation is also working with a local partner on debottlenecking of the existing Uthmaniyah gas processing plant. The kingdom's other existing gas processing plants (Berri and Shedgum) are also slated for debottlenecking. The Hawiya plant plus the debottlenecking of the three existing plants will boost Saudi Arabia's gas processing capacity to 6.3 Bcf per day by 2002.

Saudi Aramco projects that domestic gas consumption could exceed 6 Bcf per day by 2005. Most of this demand will come from industrial consumers, power plants, and petrochemical plants located in the Eastern Province. An important incentive for additional investment in natural gas is to provide a substitute for crude burning by electric utilities. In the summer of 1996, high demand by domestic power plants contributed to Aramco's decision to reduce its crude oil deliveries under some term contracts by 5%. Currently, there are no plans to export natural gas.

ELECTRICITY
Saudi Arabia's relatively affluent and rapidly growing population is increasing demand on utilities. In recent years, electricity demand has been growing by about 11% annually. Industry and Electricity Minister Hashim Yamani has stated that $117 billion will need to be invested in the country's power sector over the next 24 years, with most of this to be raised by the private sector, in order to expand capacity and build a national power grid. Meanwhile, new industrial projects have been delayed and brownouts have occurred due to inadequate power supplies Privatization of Saudi Arabia's electricity sector is under consideration, as is a division into three parts -- generation, transmission, and distribution.

Several projects now underway employ financing mechanisms that are new to Saudi Arabia's electric power sector. For example, the 1,200-megawatt, PP9 power station north of Riyadh has been funded with extra revenues generated by a special tariff imposed on heavy users since January 1995. Expansion of the 2,400-megawatt, $1.5 billion Ghazlan power plant is being financed by an internationally syndicated, $500 million, commercial loan (the first such loan in Saudi history). Greater private sector involvement is planned for the 1,750-megawatt Shuaiba power station project, which was put out for bid in April 1997 on a build-own-operate (BOO) basis, although the exact details of funding remained unresolved as of late 1997. In July 1997, Yamani issued a ministerial ruling that defines power generation as an industrial activity covered by existing foreign investment law, which means the project may be able to proceed without a special royal decree.

Saudi Arabia's electricity sector is run by four regional state-owned companies: Saudi Consolidated Electricity Company (SCECO) East, West, Central, and South. All four companies operate at a loss because they are required to sell power below cost to Saudi consumers. The government subsidizes the cost of electricity and pays a guaranteed dividend to private shareholders. In July 1997, SCECO-Central, which is responsible for providing power to the capital, Riyadh, issued an invitation to bid on expansion of the 450-megawatt Al-Qassim power plant. The expansion will add 300 megawatts of capacity to the plant, and will cost $300 million. Saudi Arabia has downsized plans for a new utility company in its twin industrial cities of Yanbu and Jubail. The company, known as The Utility Company (UCO), is intended to supply water and power infrastructure. Bechtel and Parsons were to be founding shareholders, although it now appears that state companies will own UCO, at least initially, while Bechtel and Parsons will continue in advisory roles.

In December 1997, leaders of the GCC (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) met in Kuwait and discussed a $1.7 billion plan to connect their power grids. The first phase of this project would connect Bahrain, Kuwait, Qatar, and Saudi Arabia and be completed by 2002. The idea is to cut the cost of electric power generation and to more effectively utilize surplus power. The second phase would link Oman and the United Arab Emirates, and would be completed in 2007. The GCC is scheduled to meet in March 1998 to further discuss the plan.

COUNTRY OVERVIEW
Head of State: King Fahd ibn Abd al-Aziz al-Sa'ud
Crown Prince: Abdullah ibn Abd al-Aziz al-Sa'ud
Independence: September 23, 1932 (unification)
Population (1996E): 18.8 million
Location/Size: Between the Persian Gulf and the Red Sea/865,000 square miles (about 1/4 the size of the U.S.)
Major Cities: Riyadh (royal capital), Jeddah (administrative capital), Mecca, Medina, Dammam, Jubayl, Buraydah
Language: Arabic
Ethnic Groups: Arab (90%), Afro-Asian (10%)
Religion: Muslim (100%) - predominantly Sunni
Defense (8/96): Army (70,000), Navy (13,500 marines), Air Force (18,000), National Guard (57,000)

ECONOMIC OVERVIEW
Currency: Riyal
Market Exchange Rate (2/98): US$1 = 3.75 riyals
Gross Domestic Product (GDP - market rate, 1990 U.S. dollars)(1997E): $123.7 billion
Real GDP Growth Rate (1998E): 1.3%-2.4%
Inflation Rate (consumer prices)(1998E): 1.3%-4.0%
Current Account Balance (1997E): -$1.4 billion (estimates vary, with some showing a slight surplus for 1997)
Major Trading Partners: Japan, United States, EC
Trade Balance (1997E): $32.0 billion
Merchandise Exports (1997E): $56.9 billion
Merchandise Imports (1997E): $24.9 billion
Major Exports: Crude oil and petroleum products
Major Imports: Industrial goods, metals, food
Oil Export Revenues (1997E): $50.3 billion
Oil Export Revenues/Total Export Revenues (1997E): 88.3%
Monetary Reserves (11/96, non-gold): $8.2 billion

ENERGY OVERVIEW
Minister of Petroleum and Mineral Resources: Ali bin Ibrahim al-Naimi (since 8/95)
Minister of Industry and Electricity: Hashim Yamani
Proven Oil Reserves (1/1/98): 261.5 billion barrels
Oil Production (1997E): 9.0 million barrels per day (bbl/d), of which 8.2 million bbl/d is crude oil (excludes Neutral Zone)
OPEC Crude Oil Production Quota (1/1/98): 8.76 million bbl/d (excludes Neutral Zone -- NZ)
Oil Production Capacity (1998E): 11.0 million bbl/d (excludes NZ)
Oil Consumption (1997E): 1.2 million bbl/d
Crude Oil Refining Capacity (1/1/98E): 1.66 million bbl/d
Net Oil Exports (1997E): 7.8 million bbl/d (excludes NZ)
Natural Gas Reserves (1/1/98): 190.5 trillion cubic feet (Tcf)
Natural Gas Production (1996E): 1.5 Tcf
Natural Gas Consumption (1996E): 1.5 Tcf
Electric Generating Capacity (1/1/96): 21 gigawatts
Net Electricity Generation (1996): 95 billion kilowatthours

ENVIRONMENT OVERVIEW
Total Energy Consumption (1996E): 4.0 quadrillion Btu
Energy Consumption per Capita (1996E): 214.4 million Btu (vs. 351.9 million Btu in the United States)
Energy Consumption per $1987 of GDP (1996E): 41.4 thousand Btu (vs. 16.7 thousand Btu in U.S.)
Energy-Related Carbon Emissions (1996E): 69.8 million metric tons (1.2% of world carbon emissions)
Carbon Emissions per Capita (1996E): 3.7 metric tons (vs. 5.5 metric tons in the United States)
Carbon Emissions per thousand $1987 of GDP (1996E): 0.72 metric tons (vs. 0.26 metric tons in U.S.)
Major Environmental Issues: Coastal pollution, water depletion, and desertification

OIL AND GAS INDUSTRIES
Organization: The Supreme Petroleum Council governs the nationalized oil industry, including Saudi Arabian Oil Co. (Saudi Aramco) ­ crude production, refining and marketing; Saudi Basic Industries Corp. (SABIC) ­ petrochemicals; Star Enterprise (U.S.) ­ Saudi Refining Inc. (50%), Texaco (50%); Ssangyong Oil Refining Co. (S. Korea) ­ Saudi Aramco (35%), Ssangyong (65%); Luberef - Mobil (30%) and Petrolube - Mobil (29%) - lubricating oil joint ventures; Vela International Marine Ltd. - shipping subsidiary; Aramco Services Co. (Houston) and Aramco Overseas Co. (Netherlands) - services subsidiaries; Saudi Petroleum International Inc. (New York) and Saudi Petroleum Overseas Ltd. (London/Tokyo) - marketing subsidiaries.
Major Foreign Oil Company Involvement: Mobil, Shell
Major Ports: Jeddah, Jubail, Ras al-Khafji, Ras Tanura, Juaymah, Rabigh, Yanbu, Zuluf
Major Oil Fields (reserves - billion barrels)(1995E): Ghawar (70), Safaniya (19), Abqaiq (17), Berri (11), Manifa (11), Zuluf (8), Shaybah (7), Abu Saafa (6), Khurusaniya (3.5)
Major Pipelines (capacity - million bbl/d): Petroline (4.8), IPSA 1 (0.5), IPSA 2 (1.7), Abqaiq-Yanbu NGL line (0.3), (note: IPSA I shut since 1990)
Major Refineries (capacity, 1/1/98): Aramco - Ras Tanura 300,000 bbl/d, Rabigh 325,000 bbl/d, Yanbu 190,000 bbl/d, Riyadh 140,000 bbl/d, Jeddah 42,000 bbl/d; Aramco/Mobil - Yanbu 331,700 bbl/d; Petromin/Shell - al-Jubail 292,000 bbl/d; Arabian Oil Company - Ras al-Khafji 30,000 bbl/d

For more information from EIA on Saudi Arabia, please see:
EIA - Country Information on Saudi Arabia

Links to other sites:
1997 CIA World Factbook - Saudi Arabia
U.S. Department of Energy's Office of Fossil Energy's International section - Saudi Arabia
U.S. State Department's Consular Information Sheet - Saudi Arabia
U.S. State Department Country Commercial Guide for Saudi Arabia
Library of Congress Country Study on Saudi Arabia
U.S. State Department Background Notes on Saudi Arabia - August 1995

The following links are provided solely as a service to our customers, and therefore should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. In addition, EIA does not guarantee the content or accuracy of any information presented in linked sites.
Saudi Aramco Home Page
Saudi Arabian Embassy in the United States
1994/95 Energy Indicators for Saudi Arabia provided by the International Energy Agency
The Center for Middle Eastern Studies - Saudi Arabia
Information on Saudi Arabia from Arabia On-Line
Information on Saudi Arabia from ArabNet

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File last modified: February 12, 1998

Contact:

Lowell Feld
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Phone: (202)586-9502
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URL: http://www.eia.doe.gov/emeu/cabs/saudi.htm