OPEC : 143rd (Extraordinary) Meeting of the OPEC Conference

143rd (Extraordinary) Meeting of the OPEC Conference

No 21/2006
Abuja, Nigeria
14 Dec 2006

The 143rd (Extraordinary) Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Abuja, the Federal Republic of Nigeria, on 14 December 2006, under the Chairmanship of its President, HE Dr. Edmund Maduabebe Daukoru, Minister of State for Petroleum Resources of Nigeria and Head of its Delegation, and its Alternate President, HE Mohamed Bin Dhaen Al Hamli, Minister of Energy of the United Arab Emirates and Head of its Delegation.

The Conference welcomed the presence of the Minister of Petroleum of the Republic of Angola, the Minister of Oil and Gas of the Sultanate of Oman, and the Minister of Energy and Mining of the Republic of Sudan, as well as high-level representatives from the Arab Republic of Egypt and Mexico, attending the Meeting as Observers.

The Conference considered the report of the Ministerial Monitoring Sub-Committee, whose Members the Conference again thanked for their untiring efforts on behalf of the Organization, as well as other presentations.

Having reviewed the oil market outlook, including the overall demand/supply expectations for the year 2007, in particular the first and second quarters, as well as the outlook for the oil market in the medium term, the Conference observed that market fundamentals clearly indicate that there is more than ample crude supply, high stock levels and increasing spare capacity. The Conference noted that, although the global economy is forecast to continue to grow, economic growth is expected to slow down in 2007. Moreover, while world oil demand is estimated to increase by 1.3 mb/d in 2007, the Conference observed that this is likely to be more than offset by a projected increase of 1.8 mb/d in non-OPEC supply, its highest rise since 1984.

The Conference also noted, with satisfaction, that the decision it had taken in Doha to reduce production by 1.2 mb/d as of 1 November 2006 had succeeded in stabilizing the market and bringing it into balance, although prices remain volatile, reflecting the continuing supply overhang in the market.

In view of the above, the Conference decided to reduce OPEC production by a further 500,000 b/d, with effect from 1 February 2007, in order to balance supply and demand. The Conference further reiterated the Organization’s determination to take all measures deemed necessary to keep market stability through the maintenance of supply and demand in balance, for the benefit of producers and consumers alike. Concurring on the need, more than ever, for extreme vigilance in assessing the market during the coming months, the Conference also confirmed that its next Ordinary Meeting will be held on 15 March 2007, in Vienna, Austria.

In accordance with the provisions of Article 7 of the OPEC Statute, the Conference unanimously admitted the Republic of Angola as the twelfth Full Member of the Organization, with effect from 1 January 2007.

The Conference approved the Budget of the Organization for the year 2007.

The Conference decided to appoint Mr. Abdulla Salem El Badri, from the Socialist Peoples Libyan Arab Jamahiriya, as Secretary General of the Organization for a period of three years, with effect from 1 January 2007.

The Conference agreed that the III Summit of OPEC Heads of State and Government will take place in the Kingdom of Saudi Arabia in 2007.

The Conference paid glowing tribute to the excellent performance of its outgoing President, HE Dr. Edmund Daukoru, Minister of State for Petroleum Resources of Nigeria and Head of its Delegation, expressing particular appreciation of his also shouldering the responsibilities of Secretary General of the Organization during another challenging year, 2006, and praised his successful endeavours in the advancement of the aims of OPEC and its Members. The Conference equally commended Mr. Mohammed S. Barkindo, Nigeria’s National Representative to the Economic Commission Board, for his excellent conduct of the day-to-day affairs of the Secretariat, as Acting for the Secretary General, during the same period.

The Conference expressed its sincere gratitude to His Excellency General Olusegun Obasanjo, Head of State of the Federal Republic of Nigeria, as well as the Government and people of Nigeria, for having hosted the Meeting and for the friendly welcome extended to the Conference and all Delegates. In addition, the Conference recorded its special thanks to HE Dr. Edmund Daukoru, Nigerian Minister of State for Petroleum Resources, and his Staff for their warm hospitality and the excellent arrangements made for the Meeting.

The Conference passed Resolutions that will be published on 14 January 2007, after ratification by Member Countries.


Decrease of production levels by OPEC Member Countries
(with the exception of Iraq)

Decrease (b/d)
as per Doha Agreement (Effective 1 Nov. 06)
Additional decrease (b/d)as per Abuja Agreement
(Effective 1st Feb. 07)
Total decrease
Algeria 59,000 25,000 84,000
Indonesia 39,000 16,000 55,000
I.R. Iran 176,000 73,000 249,000
Kuwait 100,000 42,000 142,000
S.P. Libyan A.J. 72,000 30,000 102,000
Nigeria 100,000 42,000 142,000
Qatar 35,000 15,000 50,000
Saudi Arabia 380,000 158,000 538,000
UAE 101,000 42,000 143,000
Venezuela 138,000 57,000 195,000
Total 1,200,000 500,000 1,700,000