RIYADH, 15 November 2007 — The Organization of Petroleum Exporting Countries (OPEC) has announced that it will help developing and least developed countries (LDCs) offset part of the impact of the rise in oil prices by funding their socioeconomic projects.
This was announced by Abdullah Al-Badri, secretary-general of OPEC, at a press conference attended by Prince Abdul Aziz ibn Salman, chairman, preparatory committee of OPEC summit, which starts here on Saturday.
The press conference was held at the Riyadh Mariott, where a media center has been set up. An exhibition of oil companies is also being held on the sidelines of the summit.
Referring to the growing concerns over the escalating price of oil and its impact on the developing countries, El-Badri said OPEC shared their concerns, since it was not in its interest to see oil prices go through the roof. “We are neither in favor of high nor low oil prices. We want stability in the market and are in favor of a balanced and equitable solution. The current price situation is something for which the oil-producing countries are not responsible.”
He mentioned that OPEC member states would be investing up to $150 billion on 120 projects to produce 19 million bpd by 2015. As for its role in alleviating the pain of developing countries, he said OPEC would assist them in their economic development programs, especially in the fields of education, housing and health care.
Earlier, Finance Minister Ibrahim Al-Assaf, current chairman of OPEC, had announced on the occasion of its 30th anniversary last year that the oil grouping would give a grant of $15 million to the Palestinian people to help them in their difficulties. Similar assistance will be extended to Afro-Asian countries.
On the question of oil price rise and the steps being taken by OPEC to deal with the situation, the secretary-general said oil supplies were available.
What was important was capacity building as far as refineries were concerned. This situation is being addressed by member countries. He also said it was not true that China and India were partly responsible for the hike in oil prices due to their growing energy consumption. “There are other factors beyond OPEC’s control,” he observed.
Elaborating on his statement, Prince Abdul Aziz, deputy minister of Petroleum and Mineral Resources, referred to Saudi Aramco’s joint venture agreement with Sinopec in setting up an oil refinery in the southern province of Fujian. He also cited cooperation with Russia, whose Lukoil company was involved in an SR3 billion gas exploration contract in collaboration with China Petroleum Corporation (Sinopec), ENI (Italy) and Repsol YPF of Spain forming part of the consortium.
Responding to a question on the use of oil as a political weapon by OPEC, El-Badri said such was not the case. He said the fact that one of themes of the OPEC summit was sharing prosperity with the member countries clearly shows that such a perception is misconceived. The founding of OPEC Fund itself testifies to the humanitarian concerns of the organization. In this context, Prince Abdul Aziz referred to the Kingdom’s contribution to developing countries and said if other countries donated on the same scale as the Kingdom, “The world would be a better place to live in.”
On the question of energy security and safeguarding oilfields against terrorist attacks, the deputy minister said the Kingdom had an enviable track record in this field. “We are capable of taking pre-emptive and preventive action against any such attack,” he remarked.
Asked about climate change and OPEC’s role in curbing environmental pollution, the secretary-general said it was a matter of concern for the organization. However, he assured the audience that they were ready to help the member countries in providing access to the technology to reduce carbon dioxide emissions.
Later, after the press conference, Prince Abdul Aziz said the Kingdom had undertaken measures for acquiring carbon sequestration technology to capture, transport and store CO2 and remove it from the atmosphere.
Environment-friendly technology had also been installed at the Shuaiba oilfields, which the foreign media covering the summit visited during their current stay in the capital.
He disclosed that the King Abdullah University for Science and Technology (KAUST) would set up a research institute devoted to the Kingdom’s clean energy program. “There will be a few surprises at the summit in this regard,” he said without elaborating.
Meanwhile, New York’s main contract, light sweet crude for December delivery, rocketed $2.20 to $93.37 per barrel. In London, Brent North Sea crude for December delivery soared $2.04 to $90.87 per barrel.
