OPEC clarifies news report on 2mb/d production increase

No 14/2005
Vienna, Austria
11 Sep 2005

Our attention has been drawn to some newswire reports quoting from an interview to be published in the German magazine Der Spiegel, that OPEC plans to announce an increase of its Member Countries crude oil production by just under 2 million barrels per day at the next Conference, scheduled for September 19-20, attributing the statement to the Acting Secretary General, Dr Adnan Shihab-Eldin.

We wish to state that the above statement is incorrect and does not reflect what Dr Shihab-Eldin told the Der Spiegel. In response to a question about OPEC’s plans to increase production, Dr Shihab-Eldin had answered that Member Countries of the Organization still have sizeable remaining spare production capacity, currently just under 2 mb/d, around 1.5 mb/d of which is in the Kingdom of Saudi Arabia.

He had stated further that Saudi Arabia had indicated earlier that it stands ready to increase its oil production to replace any shortage in the crude oil market, following the shutdown of some US oil production in the Gulf of Mexico, in the wake of the destructive Hurricane Katrina. In this regard, Dr Shihab Eldin mentioned that several proposals to increase OPEC production have been advanced and supported in recent days by many OPEC Member Countries, as part of continued efforts of the Organization to ensure that the market remain well supplied, and that such proposals will be considered and decided upon during the forthcoming Ministerial Conference.

Omar Farouk Ibrahim,
Head PR and Information Department