Japan and the economies of the Arabian Gulf region are poised to substantially boost joint economic growth if they take advantage of opportunities to increase business cooperation, said Abdulaziz F. Al-Khayyal, Saudi Aramco's senior vice president of Refining, Marketing and International at a symposium here. The symposium, entitled "Towards a New Business Partnership Between Japan and the Arab Gulf Cooperation Council (GCC)," was sponsored by the Japan Bank for International Cooperation (JBIC) to commemorate the opening of JBIC's Representative Office in Dubai. In an address yesterday, Al-Khayyal said that a starting point for a model of cooperation is recognition that the GCC states hold 38 percent of the world's proven oil reserves, and that Japan is the third-largest consumer of oil in the world, necessarily relying heavily on Gulf producers. This interdependence, said Al-Khayyal, can offer distinct advantages, in four areas in particular. The first dimension includes opportunities in oil and gas development. For example, Al-Khayyal said, Saudi Aramco is engaged in an unprecedented expansion plan to boost its oil production capacity to 12 million barrels per day by 2009, which includes a 1.5 to 2 million barrel per day buffer of spare capacity. "We are using Japanese technology, expertise and equipment in nearly every aspect of Saudi Aramco's operations, from precision pumps to supertankers," Al-Khayyal said. "Japanese manufacturers, contractors and engineering firms have worked closely with us to develop grassroots projects like Hawiyah and Haradh - two of the largest gas plants ever built." The second dimension of Japan-GCC business cooperation, said Al-Khayyal, comprises opportunities to add value to existing oil and gas streams. Perhaps the best example is the PETRORabigh joint venture between Saudi Aramco and Sumitomo Chemical, which will convert a basic topping refinery into a refining-petrochemical complex that will produce 2.2 million tons per year of olefins-based petrochemicals and anchor an industrial city in Rabigh on Saudi Arabia's Red Sea coast. The third dimension of the cooperative model is what Al-Khayyal labeled "energy-intensive industries" other than petroleum and petrochemicals, including metals, minerals processing, glass, fertilizers and wood product manufacturing. Saudi Arabia and other Gulf countries can benefit from synergy between minerals and reasonably-priced energy, while Japan has plenty of technology on offer. "So, cooperation means opportunity," Al-Khayyal said. Economic diversification - primarily away from the hydrocarbon sector - is the fourth dimension for cooperation. "Opportunities exist especially in services like finance, banking, trade, travel, transportation, insurance and government work," said Al-Khayyal. Al-Khayyal concluded his talk by noting that economic interdependence is a matter of mutual gain. "More than that," he added, "I believe it's a manifestation of respect… respect for each other's values, and respect for what each of us brings to the table." In this regard, he pointed out, Saudi Aramco's cooperation with Japanese business is a model, with not only the PETRORabigh joint venture to its credit, but also its joint venture with refining and distribution company Showa Shell Sekiyu K.K. and its long history of working with Japanese companies, according to a report carried today by Saudi Aramco's web-site.
