129th (Extraordinary) Meeting of the OPEC Conference

No 03/2004
Algiers, Algeria
10 Feb 2004

The 129th (Extraordinary) Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Algiers, Algeria, on February 10, 2004, under the Chairmanship of its President, HE Dr Purnomo Yusgiantoro, Minister of Energy and Mineral Resources of Indonesia and Head of its Delegation.

The Conference extended its deepest condolences to the Government and people of the Islamic Republic of Iran for the terrible loss they have suffered as a consequence of the disastrous earthquake that struck the country some weeks previously.

The Conference also expressed its sadness at the recent demise of Dr Fuad Rouhani, who served as the Organization’s first Secretary General and Chairman of the OPEC Board of Governors from 1961 to 1964.

The Conference welcomed the Minister of Petroleum of the Republic of Angola and senior officials from the Secretariat of Energy of Mexico and the Ministry of Oil and Gas of the Sultanate of Oman, whose presence at the Meeting is seen as evidence of these countries’ willingness to enter into concrete and constructive dialogue with the Organization. In this regard, the Conference emphasized the value of continued co-operation from all oil producers in ensuring market stability.

The Conference considered the report of the Ministerial Monitoring Sub-Committee and, once again, thanked the Sub-Committee Members for their untiring efforts on behalf of OPEC and its Member Countries.

The Conference reviewed oil market developments and the outlook and noted that, despite the increased demand observed in 2003, especially in the fourth quarter, OPEC production ensured that the market remained well supplied throughout 2003 and in the first quarter 2004, aiming to maintain prices within the target range of the OPEC Reference Basket.

However, in view of the projected significant supply surplus in the seasonally low demand second quarter, the Conference decided that remedial supply responses are needed to maintain market balance and avert downward pressure on oil prices. To this end, the Conference decided to maintain the OPEC production ceiling (excluding Iraq) at 24.5 mb/d until the end of March 2004, with a strong commitment from Member Countries to comply with the agreed production levels.

Furthermore, whilst reaffirming its pledge to guarantee adequate supplies to consumers, as consistently shown in the past, the Conference decided to reduce the 24.5 mb/d ceiling by 1 mb/d, to 23.5 mb/d, effective April 1, 2004, distributed pro rata.

The Conference reiterated that its next Ordinary Meeting will convene in Vienna, Austria, on Wednesday, March 31, 2004 and that an Extraordinary Meeting will take place in Beirut, Lebanon, on Thursday, June 3, 2004.

The Conference expressed its sincere gratitude to HE Abdelaziz Bouteflika, the President of the Republic, the Government and the People of Algeria for the warm hospitality extended to the Conference participants and for the excellent arrangements made for the Meeting.

Production in t/b (effective 1 April 2004)
Member Countries Old production New Production Decrease
Algeria 782 750 32
Indonesia 1,270 1,218 52
Iran 3,597 3,450 147
Kuwait 1,966 1,886 80
Libya 1,312 1,258 54
Nigeria 2,018 1,936 82
Qatar 635 609 26
S. Arabia 7,963 7,638 325
UAE 2,138 2,051 87
Venezuela 2,819 2,704 115
Total 2,4500 23,500 1,000