INTERVIEW-Saudi Arabia capacity increase plans on track

DALIAN, China, Sept 8 (Reuters) - Saudi Arabia is on schedule with plans to boost its crude oil production capacity to 12.5 million barrels per day by 2009, despite rising industry costs, a top official at state oil company Saudi Aramco said on Saturday.

Higher labour and raw materials prices have, however, hit two planned joint-venture refineries, which will now cost more than original estimates of around $6 billion, said Abdulaziz Al-Khayyal, Senior Vice-President for Industrial Relations.

Both are 400,000 barrel per day export-oriented projects, one with France's Total (TOTF.PA) and the other a partnership with U.S. firm ConocoPhillips (COP.N).

"We are on schedule," Khayyal told Reuters when asked about Saudi Arabia's crude capacity expansion plans. He was in the northeastern Chinese city of Dalian for the World Economic Forum.

The world's top oil exporter has fast-tracked oilfield expansion plans to raise output capacity and maintain spare capacity of at least 1.5 million bpd to meet growing world demand or cover unexpected shortfalls in supply.