June 20 (Bloomberg) -- Saudi Arabia expects work to expand the Khurais oil field to be completed by mid-2009, boosting the country's production capacity by 1.2 million barrels a day, the state-run Saudi Press Agency reported.

Oil consumers and producers are due to meet June 22 in Jeddah, Saudi Arabia, to discuss how to stabilize soaring crude prices. The Saudi government will organize a trip to the Khurais field during the summit, the news service said, describing the project as ``one of the biggest'' for the global oil industry.

Khurais is part of Saudi Arabia's plan to expand total production capacity to 12.5 million barrels a day by end 2009, according to Riyadh-based SPA. The kingdom is the world's biggest crude exporter.

Thirty-five countries, more than 25 international oil companies and seven international organizations will take part in the meeting in the Red Sea port city, aimed at ``finding ways to deal with the increase in the oil prices which is unjustified by market fundamentals,'' SPA said.

The news service reiterated comments by King Abdullah, Foreign Minster Saud al-Faisal and Oil Minister Ali al-Naimi expressing ``serious concern about the increase in prices.'' They also restated pledged to seek market stabilization and the ``safety of oil supply.''

The Organization of Petroleum Exporting Countries, the International Energy Agency, the European Union, and the International Monetary Fund are among the participants to the meeting, the state news agency said.

To contact the reporter on this story: Maher Chmaytelli in Athens at mchmaytelli@bloomberg.net

Last Updated: June 20, 2008 05:40 EDT