This month’s cover ... shows Ngoni, a six year old HIV-positive Zimbab- wean boy, resting after eating his morning meal at a hospice in Harare (see feature on pp28–31). Photo: Reuters/Howard Burditt Vol XXXIV, No 3 ISSN 0474-6279 May/June 2003 02 Editorial Information 03 Commentary A balanced perspective 04 Noticeboard OPEC Conference meets in Doha (p6) 06 Conference Notes OPEC maintains production ceiling steady at 25.4m b/d at Extraordinary Meeting in Qatari capital Doha Mission to Doha: diary of a journalist (p10) 14 Forum The international oil industry: how OPEC sees its present and its future OPEC Fund helps in The outcome of the Seminar on the application of the the battle against Photo: Photo: M Ladurner UN Framework Classification on Energy HIV/AIDS (p28) Photo: Statoil Reserves/Resources to OPEC Member Countries (p17) 24 OPEC Fund Interview: The OPEC Fund — continuing to assist the development of poorer countries HIV/AIDS tackled in developing countries as OPEC Fund tops up grant account to $30m (p28) 32 Newsline Photo: Photo: Reuters/Ian Jones Algeria’s President Bouteflika Oil and gas news from OPEC visits Austria (p34) 42 Market Review Obasanjo inaugurated for second term (p67) Covering March/April 66 Member Country Focus Development and economic news from OPEC 72 OPEC Fund News Photo: Photo: Reuters/George Esiri Photo: WFP/Richard Lee WFP/Richard Photo: 78 Secretariat Notes May/June 2003 1 Publishers Editorial policy OPEC The OPEC Bulletin is published by the Pub- Organization of the Petroleum Exporting lic Relations & Information Department. Countries, Obere Donaustrasse 93, The contents do not necessarily reflect 1020 Vienna, Austria the official views of OPEC or its Member Telephone: +43 1 211 12/0 Countries. Names and boundaries on any Telefax: +43 1 216 4320 maps should not be regarded as authorita- Public Relations & Information tive. No responsibility is taken for claims Department fax: +43 1 214 9827 or contents of advertisements. Editorial E-mail: [email protected] material may be freely reproduced (unless E-mail: OPEC News Agency: [email protected] copyrighted), crediting the OPEC Bulletin Web site: http://www.opec.org as the source. A copy to the Editor-in-Chief Hard copy subscription: $70/year would be appreciated. Secretariat officials Membership and aims Editorial staff Secretary General OPEC is a permanent, intergovernmental Or- Dr Alvaro Silva-Calderón Editor-in-Chief ganization, established in Baghdad, September Dr Omar Farouk Ibrahim 10–14, 1960, by IR Iran, Iraq, Kuwait, Saudi Director, Research Division Editor Arabia and Venezuela. Its objective is to co-ordi- Dr Adnan Shihab-Eldin Graham Patterson nate and unify petroleum policies among Mem- Deputy Editor ber Countries, in order to secure fair and stable Head, Petroleum Market Analysis Philippa Webb-Muegge (maternity leave) prices for petroleum producers; an efficient, Department Lizette Kilian economic and regular supply of petroleum to Javad Yarjani Production consuming nations; and a fair return on capital Diana Lavnick to those investing in the industry. Head, Data Services Department Design The Organization comprises the five Dr Muhammad A Al Tayyeb Elfi Plakolm Founding Members and six other Full Mem- bers: Qatar (joined in 1961); Indonesia (1962); Head, Administration & Web site: www.opec.org SP Libyan AJ (1962); United Arab Emirates Human Resources Department (Abu Dhabi, 1967); Algeria (1969); and Senussi J Senussi Visit the OPEC Web site for the latest news Nigeria (1971). Ecuador joined the Organiza- and information about the Organization and its tion in 1973 and left in 1992; Gabon joined Head, Energy Studies Department Member Countries. Recent and back issues of in 1975 and left in 1995. Mohamed Hamel the OPEC Bulletin are available free of charge on the site in PDF format. Contributions Head, PR & Information Department Dr Omar Farouk Ibrahim The OPEC Bulletin welcomes original contri- butions on the technical, financial and envi- Legal Officer ronmental aspects of all stages of the energy Dolores Dobarro industry, including letters for publication, research reports and project descriptions with Head, Office of the Secretary General Indexed and abstracted in PAIS International supporting illustrations and photographs. Karin Chacin Printed in Austria by Ueberreuter Print and Digimedia Advertisements The OPEC Bulletin reaches the decision-makers in Member Countries. For details of its reasonable advertisement rates see the appropriate page at the end of the magazine. Orders from Member Countries should be sent directly to the Editor-in-Chief at the Secretariat address. Otherwise, orders should be placed through the Advertising Representatives, whose contact details are at the end of the magazine. 2 OPEC Bulletin May/June 2003 3 COMMENTARY A balanced perspective The efforts of OPEC’s Members to aid other developing countries through our sister Organization, the OPEC Fund, deserve greater recognition OPEC is rarely out of the urgently. We look at the international media spot- Fund’s contribution to the light. Whenever the Organi- battle against HIV/AIDS zation holds a Conference, through its $30 million hundreds of journalists special grant account. We representing just about all also examine a different the major TV channels and kind of success story — a newspapers descend on the sugar factory in the Sudan Secretariat, eager to hear the — and interview the Fund’s latest decision on output, Photo: Vision/Senzani World Centre Director General, HE Dr Y and to postulate on what it Seyyid Abdulai. might mean for the oil mar- There have been many ket and the world economy. changes in the global media Even when no Conference over the past decade or so. is looming, the pronounce- Perhaps the most striking ments of the OPEC Minis- has been the rise of the ters and officials are closely World Wide Web, mean- followed. ing that anyone with access By contrast, our sister to a computer has access to Organization, the OPEC the many thousands of on- Fund for International line newspapers around the Development, rarely seems world, each with their own to grab the headlines. Most point of view. But the tradi- likely this is due to the na- tional media have not been ture of the Fund’s mandate idle either. New TV chan- — providing financial assist- nels like Al-Jazeera offer a ance to poorer nations for perspective that is radically projects that will assist their different from both that of development. The western the western media, and the media, it often seems, are In Africa, AIDS is having a devastating effect on families. staid, state-run TV channels rarely concerned with things In some countries, one-fifth of all children are AIDS orphans. in the Middle East. that do not impact directly So perhaps the next time on their own countries. This the world’s media — both is a shame, because the sterling work done by the Fund is old and new — are planning their coverage of the next OPEC — in its own way — just as important as that done by Conference, they might think of our sister Organization as OPEC in stabilizing oil markets. well. Too often, the OPEC Member Countries are portrayed In this issue of the OPEC Bulletin, we attempt to redress in the media as caring only about oil prices. They do care the balance by examining some of the Fund’s efforts to help about oil prices, of course, but that is far from being the the developing world. The scourge of HIV/AIDS has taken whole story. They care deeply about other developing na- a terrible toll in recent years, and nowhere more so than tions too, as the activities of the Fund so amply demonstrate. in Africa, where some countries face economic ruin if the Media recognition of this simple fact would offer a fresher decimation of their workforces by the disease is not tackled and more balanced perspective. 2 OPEC Bulletin May/June 2003 3 NOTICEBOARD Forthcoming events Singapore, August 25–26, 2003, Negoti- annual India oil & gas review symposium & ating gas contracts. Details: Sandy Leong, international exhibition. Details: Manish Mo- Event Manager, 80 Marine Parade Road, han, Event Co-ordinator, India Oil and Gas London, UK, July 22–23, 2003, Asset #13-02 Parkway Parade, Singapore 449269. Review Symposium 2003. Tel: +91 22 2632 acquisition and divestiture in oil and gas. Tel: +65 6345 7322; fax: +65 6345 5928; 5787/2632 7177; e-mail: [email protected]; Details: IQPC Ltd, Anchor House, 15–19 e-mail: [email protected]; Web site: Web site: www.oilasia.com/iors2003. Britten Street, London SW3 3QL, UK. Tel: www.cmtevents.com. +44 (0)20 7368 9300; fax: +44 (0)20 7368 Dubai, UAE, September 8–9, 2003, Port 9301; e-mail: [email protected]; Web London, UK, September 1–5, 2003, state control conference. Details: Conference site: www.oilandgasiq.com/2032a. Fundamentals of upstream economics and Connection Administrators Pte Ltd, 105 risk analysis. Details: Petroleum Economist Cecil Street #07–02, The Octagon, Singa- Singapore, July 23, 2003, Asia LNG contracts. Ltd, 15/17 St. Cross Street, London EC1N pore 069534. Tel: +65 6222 0230; fax: +65 Details: Sandy Leong, Event Manager, 80 8UW, UK. Tel: +44 (0)20 7831 5588; fax: 6222 0121; e-mail: [email protected]; Marine Parade Road, #13-02 Parkway Parade, +44 (0)20 7831 4567 or 7831 5313; e-mail: Web site: www.cconnection.org. Singapore 449269. Tel: +65 6345 7322; fax: [email protected]; Web site: +65 6345 5928; e-mail: [email protected]; www.petroleum-economist.com. Houston, TX, USA, September 8–9, 2003, Web site: www.cmtevents.com. Offshore pipeline technology USA. Details: IBC Energy Conferences, Informa House, 30-32 Singapore, July 23–25, 2003, International Dubai, UAE Mortimer Street, London W1W 7RE, UK.