February 17, 1999

A JOINT STATEMENT ISSUED AFTER TALKS IN RIYADH: THE SAUDI AND AMERICAN OIL MINISTERS RE-AFFIRM THE IMPORTANCE OF ARABIAN GULF OIL RESERVES IN MEETING THE WORLD'S FUTURE REQUIREMENTS. SECRETARY RICHARDSON CONFIRMS SAUDI ARABIA'S IMPORTANT STRATEGIC POSITION AS A GUARANTEED SOURCE OF OIL FOR THE WORLD MARKET. The Saudi Arabian Minister of Petroleum and Minerals, Ali Al-Naimi, and the American Energy Secretary, Bill Richardson, have signed a joint statement at the end of talks held in Riyadh, on the sixth of this month. The joint statement said: "Based upon the strong bilateral relations between the Kingdom of Saudi Arabia and the United States of America, the American Energy Secretary, Bill Richardson, met with the Minister of Petroleum and Minerals, Ali Al-Naimi, in Riyadh on the sixth of February, 1999. The two sides exchanged views on the state of the world oil market, relations between the two countries in the field of energy production, as well as economic and environmental matters." The two sides discussed the current state of the world economy, and its influence on the international oil and gas industry, as well as the effect that this is having upon investment. They also discussed the question of oil supply in the future. The two sides emphasised the importance of growth in the supply of energy, to meet the increasing demand, and the importance of fair-trading in the market, as international trading expands and the world economy does well. They reaffirmed the strategic importance of the Arabian Gulf in meeting the world's future oil requirements. They went on to acknowledge the importance of oil sales in the trading relations between their two countries, and their determination to strengthen this relationship. Minister Al-Naimi emphasised the Kingdom of Saudi Arabia's record and commitment to securing the world supply of oil, as well as the interests that bond it to the American market. Secretary Richardson emphasised the strategic importance of the Kingdom of Saudi Arabia as a guaranteed source of oil, upon which the United States and other world markets rely. Minister Al-Naimi and Secretary Richardson welcomed the current broad investments being made by the two countries in each other's energy production sectors. They are expecting opportunities to increase in this field. The two sides also acknowledged that the expansion of trading links in the field of energy production would strengthen relations between the United States and the Kingdom of Saudi Arabia. The two sides also acknowledged the importance of developing Saudi Arabia's natural gas reserves, to create more opportunities for the diversification of the Saudi economy. Secretary Richardson welcomed proposals made by American companies, as evidence of their interest in this field, as well as encouraging these proposals. The two sides exchanged views on the climate-change talks and the resolutions that were made at the Buenos Aires Conference in November 1998. They reconfirmed their commitment to continued dialogue to reach a joint understanding on the fundamental issues. They acknowledged their joint commitment to exchange experiences and views in the field of science and technology, and the possibility of co-operating in exchange programmes to help develop vital industries in both countries. The two countries agreed to intensify efforts to start negotiations to reach agreements on technical co-operation. Both sides agreed to form a working team to start these negotiations, and to co-ordinate with the relevant bodies within their governments. The two teams will work to determine in a more detailed way, areas of mutual interest. They will also participate in exchange programmes between research laboratories, and study the possibility of undertaking the kind of projects envisaged in the plans. Areas of concern include: research into primary energy sources; information on energy production; forward planning in this field; natural gas technologies; mining technologies; the appropriate use of energy; environmental technologies, such as Carbon reducing technologies; as well as other areas of technical co-operation. The two sides agreed to continue the dialogue between the Saudi Ministry of Petroleum and Minerals and the American Ministry of Energy, on the subject of energy production.