Lively debates saw delegates to the Saudi Mega Projects 2005 glued to their seats on the second day of the conference. (AN photo by Imran Haider)

DAMMAM, 9 May 2005 — A senior government official has called upon Saudi and foreign companies to forge economic alliances in order to carry out new oil projects worth SR487.5 billion ($130 billion).

Abdul Rahman Abdul Kareem, deputy minister of petroleum and mineral affairs for company affairs, made the call while addressing the oil and gas session of the Saudi Mega Projects 2005 here. (See Page 14)

Salim Al-Aydh, senior vice president for engineering and operations services at Saudi Aramco, backed the minister and said the new oil projects demanded powerful companies. He pointed out that 81 percent of Aramco contractors are small companies each with a capital of less than $5 million. He emphasized the need to establish giant Saudi companies that can take up mega projects at regional and international levels.

The second day of the conference saw lively debates by experts as the delegates were glued to their seats. Not a seat was seen vacant. CEOs Patrick Allman-Ward of South Rub Al-Khali Company(SRAK) and Alexander Nikolaev of Luksar Energy detailed of SRAK and Luksar joint ventures.

Ameen Ahmed, a delegate from GAS Arabian Services, was visibly impressed with the session on oil and gas, but he reserved his praise for Al-Aydh. “He was very vocal and professional and I was very impressed with the way he addressed the situation on the forthcoming business opportunities. He touched upon the opportunities that could be best utilized by local contractors,” said Ahmed, one of the many local delegates who came for the session in order to identify the potential business opportunities.

The following session on mining opportunities and transportation also attracted substantial attention. Great details were laid out on the railway expansion projects. A very bright and attractive possible scenario for the coming five years was painted by Khaled Alyahya, president of Saudi Railways Organization.

“Railways is a major thrust area and shall go a long way in playing a major role in the infrastructure development of the country,” said Dr. Zaya Malik, the business development director of Arabian Food Supplies.

Mining is another industry where local contractors are eyeing good potential. Dr. Abdullah Dabbagh, president of Maaden, was applauded for a wonderful presentation. He highlighted the great potential in all the Maaden projects.

“It was a day well spent,” commented Malik. Having come from Jeddah, he is looking for opportunities in operations and maintenance.

The third session concentrated on the power and desalination. Presentations were made by Feheid Fahad Al-Shareef, governor of Saline Water Conversion Corporation (SWCC); Abdullah Al-Marei, president and CEO of Marafiq; Tariq Al-Betairi, executive vice president of Saudi Electric Company; Adnan Al-Mohaisen, general manager, GCC Interconnection Authority; Dr. Ranald Spiers, the CEO of Middle East and Africa International; and Fareed Al-Yagout, president of National Power Company.

“The last session of the day was really a very significant and important session,” said Zia Akbar, the group commercial manager of Al-Jabr Trading Co.

The presenter who drew the greatest applause from the audience was Sami Abdulghani, executive president of Saud Consult. He showed the possible equation between the current availability of local engineers and the great demand in the coming days. The question-and-answer session saw contractors throwing light on their problems regarding visas, Saudization, building up of expertise and so on. The end of Day One saw a look at the strength of the Saudi economy and how the second boom is under way.

“As compared to the boom of the ’70s, we are now better prepared and better equipped to maximize the results of the second boom,” commented Akbar, a veteran of more than 35 years in the Kingdom.