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Attack highlights threat to Saudi infrastructure
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| 20 May 2004 |
By Nawaf Obaid
The attack on a Saudi Arabian petrochemical facility in Yanbu on 1 May, during which four gunmen killed six senior multinational workers, has highlighted concern over the vulnerability of the Kingdom's oil infrastructure to a terrorist attack.
A senior official from the US Department of State recently warned that Saudi economic facilities and infrastructure were likely terrorist targets. A 'security premium' of several dollars is already factored into the price of oil to take this into account.
While a successful attack on the Kingdom's oil infrastructure would have an immediate impact on energy markets, the risk of serious damage to oil production is very low. Even in the 1 May attack, Saudi security agents quickly cordoned off the industrial portions of Yanbu and forced the attackers away from the compound.
However, Saudi Arabia takes the security of its oil facilities extremely seriously. The Kingdom sits upon 25 per cent of the world's known oil reserves and crucially, retains the largest spare production capacity. The Kingdom's energy infrastructure covers hundreds of square miles, but is very well protected, particularly the largest facilities.
While details of the Saudi security budget are classified, it is estimated to have been around US$5.5bn in 2003, increasing by 50 per cent for 2004. Over the past two years, the Saudi government has also allocated an extra $750m to enhance security at all of its oil facilities. At any one time, there are up to 30,000 guards protecting the Kingdom's oil infrastructure, while high technology surveillance and aircraft patrols are common at the most important facilities. Anti-aircraft installations defend key locations.
Under the auspices of the Ministry of Interior, a special unit has been created to oversee security at the major oil facilities. This is made up of representatives from the Special Security Forces, Special Emergency Forces, the General Security Service (the domestic intelligence service), regular forces of the Public Security Administration (including police officers) and specialised brigades of the National Guard.
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