A Gazprom delegation led by Deputy Management Committee Chairman Alexander Medvedev has visited Saudi Arabia and Qatar.

During the visit the delegation held talks with the leadership of the Petroleum and Mineral Resources Ministry of Saudi Arabia, Saudi Arabian General Investment Authority (SAGIA) and Saudi Basic Industries Corporation (SABIC).

When visiting Qatar the Russian delegation met with the top management of Qatar Petroleum, Qatargas and the state-owned Qatar Investment Authority.

The parties discussed issues of cooperation in the oil and gas sector, and highlighted the promising joint businesses.

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Saudi Arabia is the largest economy in the Middle East. The country’s economic development is based on oil recovery accounting at present for about 14 per cent of the global total.

Oil in Saudi Arabia is produced by National Corporation Saudi Aramco.

Saudi Arabia is the world’s fourth country in terms of natural gas reserves. Over the past decade Saudi Aramco has been active in searching for, exploring and developing both onshore and offshore gas fields. According to the corporate data, in 2005 gas extraction exceeded 70 bcm. In order to spare extra oil volumes for export purposes, there are plans to consistently boost domestic gas consumption. Saudi Arabia is intent on actively developing the national natural gas transmission and distribution system.

The Saudi Arabian General Investment Authority (SAGIA) is a state body focused on attracting investments as well as promoting the country’s economic development. Established in 2000, SAGIA represents a connecting link between the international business community and the Saudi Arabian Government.

The Saudi Basic Industries Corporation (SABIC) was set up in 1976 with a view to utilizing associated petroleum gas for the production of such petrochemical products as polymers and fertilizers. SABIC is nowadays the largest industrial concern in the Persian Gulf, producing some 10 per cent of the global total petrochemicals.

SABIC is 70 per cent owned by the State.

The State of Qatar is the world’s third-largest country in terms of natural gas resources, with the proven reserves amounting to 25.8 tcm. Gas is extracted in Qatar from the North Field being the largest natural gas deposit in the world.

Gas production in the North Field is overseen by Qatar General Petroleum Corporation (Qatar Petroleum).

Qatar has lately become a prominent natural gas producer and LNG exporter. The country’s role as a gas exporter will continue growing. In 2005 Qatar exported some 28 bcm of LNG. Within the nearest 5-6 years Qatar’s export capabilities are projected to see a several fold increase.

Qatargas’ major business lines are LNG production and marketing. The company owns an LNG plant processing gas from the North Field.

The shareholding in Qatargas is currently split among Qatar Petroleum (65 per cent), Total (10 per cent), ExxonMobil (10 per cent), Mitsui (7.5 per cent) and Marubeni (7.5 per cent).