127th
meeting of the OPEC Conference
Posted: 25 September 2003
The 127th Meeting of the Conference of the Organization of the
Petroleum Exporting Countries (OPEC) convened in Vienna, Austria,
on 24 September 2003, under the Chairmanship of its President, HE
Abdullah bin Hamad Al Attiyah, Second Deputy Prime Minister, Minister
of Energy & Industry of Qatar and Head of its Delegation, and
its Alternate President, HE Dr Purnomo Yusgiantoro, Minister of
Energy & Mines of Indonesia and Head of its Delegation.
The Conference congratulated the President of the Conference on
his recent appointment as his Country’s Second Deputy Prime
Minister, and welcomed the newly appointed Minister of Oil of the
Republic of Iraq, HE Dr Ibrahim Bahr Alolom, as the Head of its
Delegation, as well as the newly appointed Minister of Energy of
the State of Kuwait, HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, as
the Head of its Delegation.
After warmly welcoming the Minister of Petroleum & Mineral
Resources of the Syrian Arab Republic and high-level representatives
from Angola, Egypt, Mexico, the Sultanate of Oman, and the Russian
Federation, the Conference again highlighted the importance of strengthening
effective co-operation with all non-OPEC producing countries in
the interests of achieving stability in the oil market and prices.
The Conference considered the Secretary General's report, the report
of the Economic Commission Board, the report of the Ministerial
Monitoring Sub-Committee (MMSC), chaired by HE Bijan Namdar Zangeneh,
Minister of Petroleum of the Islamic Republic of Iran, and various
administrative matters.
Having reviewed the current oil market, the Conference noted that,
whilst the global economy appears to be improving, only normal,
seasonal growth in demand is expected for the fourth quarter, and
the market continues to be well-supplied. In view of the continued
rise in non-OPEC supplies and the ongoing recovery in Iraqi production,
stocks have been replenished and are rapidly reaching normal seasonal
levels, with the supply/demand balance for the fourth quarter 2003
and first quarter 2004 indicating a contra-seasonal stock build-up.
This could have a destabilizing effect on the market which requires
a reduction of supplies from all producers to ensure stability.
The Conference noted its decisions in January and April 2003 to
adjust the production ceiling prior to the supply disruption from
Iraq. Noting, also, the gradual return of this Founding Member to
the market, and in order to ensure balance to the market, the Conference
decided to return to the ceiling of 24.5 mb/d and the agreed production
levels, with effect from 1 November 2003. In this regard, all Member
Countries reiterated their commitment to the agreed production levels
and underlined the special importance of full compliance and strict
discipline in implementing such agreements.
Having taken this decision in recognition of the importance of
maintaining oil market stability for the benefit of the world economy,
as well as for consumers and producers, the Conference expressed
its expectation that non-OPEC oil producers will take concrete measures
to restrain their production increases, thereby actively sharing,
with the Organization, the burden of maintaining price and market
stability in 2004 and thereafter.
Moreover, taking into consideration the market outlook for 2004,
with its concomitant uncertainties, the Conference further decided
to convene an Extraordinary Meeting in Vienna on 4 December 2003,
to review market developments and take whatever measures it deems
appropriate at that time.
The Conference elected HE Dr Purnomo Yusgiantoro, Minister of Energy
& Mines of Indonesia and Head of its Delegation, as President
of the Conference, and HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah,
Minister of Energy of the State of Kuwait and Head of its Delegation,
as Alternate President, for one year with effect from 1 January
2004.
The Conference appointed Mr Elie Habalian Dumat, Governor for Venezuela,
as Chairman of the Board of Governors for the year 2004, and Mr
Mohamed Meziane, Governor for Algeria, as Alternate Chairman for
the same period, with effect from 1 January 2004.
The Conference decided that its next Ordinary Meeting will convene
in Vienna, Austria, on 10 March 2004.
The Conference expressed its appreciation to the Government of
the Republic of Austria and the authorities of the City of Vienna
for their warm hospitality and the excellent arrangements made for
the Meeting.
The Conference passed Resolutions that will be published on 24
October 2003, after ratification by Member Countries.
Posted by Richard Price,
Editor Pipeline Magazine
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