http://cbs3.com/businesswire/Dominican-Saudi-OilRe_f_f_9----/resources_news_html

Saudi Arabia may build oil refinery in Dominican Republic, way to access
U.S. market
Tuesday March 06, 2007
By JONATHAN M. KATZ
Associated Press Writer

SANTO DOMINGO, Dominican Republic (AP) Saudi Arabia may build an oil
refinery in the Dominican Republic in hopes of quickly expanding their
access to the U.S. market, the kingdom's embassy spokesman in Washington
said Tuesday.

Dominican Foreign Minister Carlos Morales Troncoso discussed the
proposal during an hourlong meeting with senior Saudi oil official
Ibrahim Al-Mohana and executives of the Saudi Arabian Oil Co., or Saudi
Aramco, in Riyadh, the Dominican foreign ministry confirmed in a statement.

Saudi Aramco already has refineries in the United States, but Saudi
officials see a Caribbean refinery as a means of accessing the U.S.
market while avoiding the decades of environmental impact studies and
other regulations needed to build a refinery in the United States, Nail
Al-Jubeir, spokesman for the Saudi embassy in Washington, told The
Associated Press by telephone.

Building in the United States is, ``a long, tedious process and it can
cost up to $100 million in expense,'' Al-Jubeir said. ``When the
(Dominican Republic's) approach came it's something we seriously
considered.''

Saudi Arabia holds over 260 billion barrels of proven oil reserves, a
quarter of the world's total.

Dominican officials hope a new refinery will end chronic fuel shortages
and lower gas prices, which were $4.01 per gallon on Tuesday, in the
nation of nine million. They also hope to export the refined fuel to
nearby countries, including the United States.

The Dominican Republic has been trying to boost relations with Middle
Eastern and energy-producing countries. President Leonel Fernandez
hosted the Saudi ambassador to the United States for an official lunch
at the national palace in November.

+++



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