U.S. says to help Saudi protect its oil

RIYADH (Reuters) - The United States said on Friday it had agreed to cooperate to protect Saudi Arabia's oil and will help the world's top crude exporter to develop peaceful nuclear energy.

The White House announced the agreements as President George W. Bush flew into Saudi Arabia on Friday to renew his appeal for the kingdom to help lower record oil prices.

Saudi Arabia pumps over a tenth of global oil output and severe damage to its infrastructure would have far-reaching effects. Al Qaeda has vowed more strikes on oil facilities after a failed attack on the world's largest oil processing plant at Abqaiq in February 2006.

"The United States and Saudi Arabia have agreed to cooperate in safeguarding the kingdom's energy resources by protecting key infrastructure, enhancing Saudi border security, and meeting Saudi Arabia's expanding energy needs in an environmentally responsible manner," a White House statement said.

The kingdom is the keeper of most of the world's spare oil capacity, a reserve crucial to the global energy system to deal with any surprise supply disruption.

U.S. troops left Saudi Arabia in 2003 after a decade of operations amid resentment over their presence in the kingdom.

The deal would bolster cooperation between the Saudi Ministry of Interior and the U.S. government. A joint commission on infrastructure and border security would facilitate training and other support measures.

The two countries will also sign a memorandum of understanding to cooperate on a peaceful nuclear program.

"This agreement will pave the way for Saudi Arabia's access to safe, reliable fuel sources for energy reactors and demonstrate Saudi leadership as a positive non-proliferation model for the region," the statement said.

The White House said Saudi Arabia had also agreed to two global initiatives, one to combat nuclear terrorism and another to combat the spread of weapons of mass destruction.

The U.S. is involved in a long-running dispute with Iran over its nuclear program. Tehran says its program is peaceful, but the U.S. suspects its wants nuclear weapons.

Gulf Arab interest in developing nuclear power has sparked fears of a regional arms race with Iran.

In February, France's President Nicolas Sarkozy also offered Saudi Arabia help in developing nuclear energy. (Reporting by Matt Spetalnik, writing by Lin Noueihed and Simon Webb)