A former executive of Saudi Arabian Oil Company, known as Saudi Aramco, who was referenced in a leaked U.S. diplomatic cable saying the kingdom's oil reserves were overstated by 300 billion barrels, said Wednesday he was misquoted.
A former executive of Saudi Arabian Oil Company, known as Saudi Aramco,
who was referenced in a leaked
U.S.
diplomatic cable saying the kingdom's oil reserves were overstated by 300
billion barrels, said Wednesday he was misquoted.
Sadad al-Husseini, a former head of Saudi Aramco's exploration unit, told Dow
Jones Newswires that he had "no doubt that the figures Aramco is
publishing officially are actually right."
The world's largest oil producer has declared proven oil reserves of 260
billion barrels and oil in place, which includes unrecoverable oil reserves, of
716 billion barrels.
Cables quoted by
U.K.
newspaper the Guardian said al-Husseini had in 2007 challenged figures given by
the current Saudi Aramco exploration head that reserves were 716 billion
barrels and would rise to 900 billion barrels in 20 years. The comments by
al-Husseini would mean that
Saudi
Arabia
's oil reserves were 40% less
than reported, the newspaper had said.
But al-Husseini said he only challenged the 900 billion barrels projection,
which is not an officially published figure, and was correcting a
misapprehension that the 716 billion barrels figure given as Saudi oil in place
was the same as the country's actual reserves.
"What I'm disputing (in the leaked cable) is the 900 billion barrels
figure, and correcting the fact that the 716 billion barrel figure is oil in
place, not reserves," he told Dow Jones. "If you look at Aramco's
report on reserves, it says 260 billion barrels. If you say this figure is 700
billion barrels, you're overstating it."
The fact that al-Husseini said his conversation with diplomats was casual
potentially explains the discrepancies in figures.
In the past al-Husseini, who retired at the end of 2003, has also said proven
reserves in the Organization of Petroleum Exporting Countries are inflated by
300 billion barrels.
He told Dow Jones that estimate did not include
Saudi
Arabia
, however.
"Saudi Aramco and
Saudi Arabia
have
a very professional approach to reserves information, so the reserves they
publish are credible," he said. "But other OPEC countries include
probable and potential resources and call them reserves."
According to the cable, al-Husseini said in 2007 Saudi Aramco would not reach output
capacity of 12.5 million barrels a day by 2009, but only "within the next
10 years".
In fact, the kingdom says it achieved that level of production capacity in
2010--a statement accepted as true by al-Husseini.
Saudi
Aramco declined to comment on the leaked cable.
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