The Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Naimi delivered today a speech at the Seminar on Future of Energy in the Middle East and North Africa organized by Arab Petroleum Investments Corporation (APICORP) in Manama, Bahrain. Following is the text of the speech: I would like, at the outset, to thank the Government of the Kingdom of Bahrain and HE the Minister of Energy Dr. Abdul hussain bin Ali Mirza for the warm reception and gracious hospitality. I would also like to thank Dr. Abid ibn Abdullah Al-Saadoun, Chairman of the Board of Directors of the Arab Petroleum Investments Corporation (APICORP), for inviting me to participate in APICORP's annual seminar that tackles several topics of particular importance, including the future of energy in the Arab world. With its huge discovered and undiscovered reserves, the Arab world is a major player in global oil production and consumption. Arab countries need to invest in the various stages of the oil industry, especially since these countries, whether oil-producing or non-oil-producing, are all in need of energy sources to fuel the continued economic growth and provide the basic needs of life. The Arab world consumes about nine million barrels of oil per day, almost 10% of the total global consumption. At a time when some Arab countries are experiencing political unrest, joint Arab action in economic fields, particularly in the field of oil, assumes much greater importance, since the Arab world has more than 56% of the world's proven oil reserves and more than 27% of the world's natural gas reserves. These reserves are expected to rise over the coming years with new discoveries and improved technologies that help increase recoverable oil volumes. As you know, the economies of all Arab countries, including non-oil-producing countries, are closely interconnected in various areas such as trade, investment, tourism, and the movement of labor, which means that these economies are correlated to oil and gas production and price levels. This correlation is expected to continue for several decades, bringing into focus the importance of the development, as well as the vertical and horizontal expansion, of the oil industry, including the continuation of new oil discoveries. This requires the development of appropriate financing solutions that would maintain and raise the level of production and increase oil reserves. The Arab Petroleum Investments Corporation (APICORP) was established in the early 1970's to support the financing solution system backing the development of the Arab energy sector. As an Arab entity that supports this vital sector, APICORP started operation in 1975 by providing various financing solutions to the sector's investors. As you know, energy sources, most notably oil and gas, are among the fundamentals of modern global economy.In addition to their various uses as a source of energy, oil and gas are also used as feedstock for the manufacturing of hundreds of essential and luxury end-products that are part of modern life. They provide, on the one hand, energy for transportation, refrigeration, heating, power generation, agriculture, industry, and many other areas; and are used, on the other hand, as feedstock for intermediate and downstream industries, such as clothing, cars, and even food. In terms of financial results, the companyâ€TMs assets grew from 2.1 to 5.88 billion dollars, at a 180 percent growth rate, over the past 10 years. APICORP continues to pursue a number of initiatives. Last year, for example, in a 500 million dollar acquisition, APICORP acquired a 28.3 percent stake in the National Petroleum Services Company (NAPESCO), one of the largest oil and gas field service companies in the Middle East, North Africa, and Southeast Asia. APICORP also initiated a deal in the power sector with ACWA Power, a leading power generation and water desalination company in the Middle East. In the field of funding, APICORP plays an important role in supporting the various operations of oil companies and their related activities. Last year, the company entered into three funding agreements with Maâ€TMaden Phosphate Company and Rabigh Refining and Petrochemical Company (Petro Rabigh) in the Kingdom of Saudi Arabia, and Oman Oil Refineries and Petroleum Industries Company in the Sultanate of Oman. APICORP also focuses on medium term funding and reducing reliance on short-term funding. I would like to point out the important future role assigned to our countries and companies in the development of the energy sector and the oil industry in the Arab region. This development requires billions of dollars for funding new discoveries, sustaining and seeking to increase the current production level, maintaining excess production capacity in order to stabilize the market, in addition to supplying funds for downstream projects, the creation of added value, and the development of human resources through education, training and qualification of Arab youth. Perhaps it would be fitting here to mention the role of the Kingdom of Saudi Arabia in the stability of the oil market, and its continued willingness and prompt, assiduous efforts to cooperate with all oil producing and exporting countries, both from within and outside OPEC, in order to maintain market and price stability. The Kingdom remains a highly reliable and major oil exporter, and it invests domestically in all the stages of the oil industry, in the fields of exploration, production, and refining; and internationally in the areas of transportation, storage, and downstream activities such as refining, distribution, and manufacturing. The challenge we face in the Arab world is increasing joint Arab action in the fields of oil and energy, and establishing more business partnerships both between Arab countries and between their public and private institutions. Another challenge is securing the necessary funding for all oil-related activities, including technology transfer and use, education, training, qualification, specialized studies and research in the field of energy, especially in the field of oil and gas, while focusing on environmental conservation and working to reduce harmful emissions through advanced technology, thereby maintaining the positive and valuable role of oil in the Arab and global economy and development. In conclusion, I hope that this seminar will succeed in exploring the future of energy in the Arab world and discussing the attractive investment opportunities, and be a driver in supporting inter-Arab cooperation on commercial basis while discussing possible financing, as represented in the mission and objectives of the Arab Petroleum Investment Corporation (APICORP). Thank you for your kind invitation to participate in this seminar, and thank you for your attention.
