Saudi Arabia assures oil supply for RP

The Saudi Arabian government has assured the Philippines of a steady supply of oil, Energy Secretary Raphael P.M. Lotilla said over the weekend.

Lotilla said the assurance was made by Saudi Arabian Petroleum Minister Ali Al-Naimi, in a meeting in Riyadh last Wednesday.

"Naimi has reconveyed his country’s assurances to President Arroyo that in case of any supply disruption from other sources, the Saudis stand ready to make up for the shortfall," he said.

According to Lotilla, the minister made the assurance with gusto. "And we will do it with pleasure," Lotilla said.

Lotilla pointed out that in 2006, the bulk, or 56 percent of the country’s crude supply came from Saudi Arabia.

Including Saudi Arabia, 95 percent of Philippine crude supply in 2006 came from the Middle East with a total volume of 74.35 million barrels.

Saudi Arabia hosted a meeting between the oil ministers of West Asia (Iran, Kuwait, United Arab Emirates, Qatar, Oman, Iraq, Bahrain) and energy ministers from East Asia (Japan, China, Korea, India, Indonesia, Pakistan, Philippines, Brunei and Thailand).

The meeting discussed the energy interdependence and cooperation between the two regions of Asia.

The West Asian countries are concerned with the stability of demand from East Asia (including South and Southeast Asia) which now accounts for 66 percent of West Asian exports.

East Asian countries, on the other hand, are concerned with stability of supply and affordability of oil prices.