No time for complacency The OPEC Fund for International Development increases funding against C o m m e n t a r y HIV/AIDS with fresh approvals In the world of oil and oil markets one might wonder what doubt should not be allowed to play a part in trying to help im- OPEC Member Countries have to do with combating the spread prove the welfare of others; rather hope must be high on the of AIDS. The answer should not come as a surprise to those agenda, and it’s in this sense that the Member Countries of OPEC who know OPEC well, because over the past 29 years, its sister and the OPEC Fund have continued to pledge financial assistance organization, the OPEC Fund for International Development has to those in need. given more than $330.5 million in grant assistance for a host The world has known about HIV for over 25 years now, and of important activities, including the global campaign against yet the battle against the spread of the virus is as urgent now HIV/AIDS. as it has ever been. The statistics make for worrying reading, as Since 2001, the Fund has committed over $26m from the many experts say that little has improved in terms of infection $35m set aside for the AIDS cause. In effect, this means that in rates and combating the spread of the disease, especially in the four years since the HIV/AIDS account was launched, commit- developing countries, and in particular in Africa. Increasingly, ments under it have grown to represent more than eight per cent women are the victims of HIV/AIDS, which is a terrible indict- of the Fund’s total, cumulative grant approvals. ment of those who continue to ignore the severity of the virus It was the disparities that existed between the Northern and or the status of women in society. Southern Hemispheres in the 1970s, and the concern at the gap It has been recognized that education is the key to success between the ‘haves’ and ‘have-nots’ which prompted the Mem- because the disease can only be slowed if people are willing to ber Countries of OPEC to found the OPEC Fund to address the take the necessary precautions and responsibilities associated needs of societies and people less fortunate than themselves. with halting transmission of the virus. Governments around the Although the Fund was established at the height of the North/ world should be on high alert because, cultural issues aside, the South debate, little has changed since in the way wealth and in- losses to the world’s labour force and productivity through pre- deed health are distributed across our planet. mature death should itself be enough to combat any inertia in The HIV/AIDS pandemic is claiming lives and decimating dealing with the virus in a systematic and effective way. families and communities the world over. It is also having a dev- OPEC’s sister organization, the OPEC Fund, recognizes this astating impact on the economies of developing countries, by and continues to give to the cause. The latest commitments, depleting the workforce and hindering productivity. Its destruc- totalling $7.75m and approved and signed at the March Session tive impact is well-documented, but this recognition needs to be of the Fund’s Governing Board, will co-finance three major initia- backed up by greater commitment and concrete action. tives: with the International Labor Organization, the World Health HIV/AIDS is often tainted by cynicism and doubt. However, Organization and UNESCO. Forum 4 Working together C o n t e n t s Photo: European Commission European Photo: OPEC Fund Feature 8 OPEC Fund gives over $7 million towards HIV/AIDS Interview with the Director-General of the OPEC Fund for International Development, Suleiman Jasir Al-Herbish (p12) Photo: Reuters/Supri Photo: Features 16 Algeria goes liquid UAE to host gas show after Bilbao’s success (p20) Geospace, Austria Geospace, Publishers Membership and aims OPEC OPEC is a permanent, intergovernmental Organization of the Petroleum Exporting Countries Organization, established in Baghdad, September Obere Donaustrasse 93 10–14, 1960, by IR Iran, Iraq, Kuwait, Saudi Arabia 1020 Vienna, Austria and Venezuela. Its objective is to co-ordinate and Telephone: +43 1 211 12/0 unify petroleum policies among Member Countries, OPEC bulletin Telefax: +43 1 216 4320 in order to secure fair and stable prices for petroleum Public Relations & Information producers; an efficient, economic and regular supply Department fax: +43 1 214 9827 of petroleum to consuming nations; and a fair return E-mail: [email protected] on capital to those investing in the industry. The Organization comprises the five Founding Members Web site: www.opec.org and six other Full Members: Qatar (joined in 1961); Cover Visit the OPEC Web site for the latest news and infor- Indonesia (1962); SP Libyan AJ (1962); United Arab This month’s cover shows people lighting candles to mation about the Organization and back issues of the Emirates (Abu Dhabi, 1967); Algeria (1969); and mark World AIDS Day in Manila (see Feature on pp8-15). OPEC Bulletin whichis also available free of charge in Nigeria (1971). Ecuador joined the Organization in Photo: Reuters/Erik de Castro PDF format. 1973 and left in 1992; Gabon joined in 1975 and left Vol XXXVI, No 4, April 2005, ISSN 0474–6279 Hard copy subscription: $70/year in 1995. Newsline 24 Another record year for Iran Oil and gas news from OPEC (p26) Photo: Reuters/Morteza Nikoubazl Reuters/Morteza Photo: Member Country Focus 30 New President for Iraq Development and economic news from OPEC Photo: Reuters/Ceerwan Aziz Reuters/Ceerwan Photo: OPEC Fund News 36 Recent OPEC Fund loans and grants Photo: Reuters/str Photo: Market Review 40 Noticeboard 62 Advertising Rates 63 OPEC Publications 64 Secretariat officials Contributions Editorial staff Secretary General The OPEC Bulletin welcomes original contributions on Editor-in-Chief HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah the technical, financial and environmental aspects Dr Omar Farouk Ibrahim Acting for the Secretary General, Director, Research Division of all stages of the energy industry, including letters Senior Co-ordinator Dr Adnan Shihab-Eldin for publication, research reports and project descrip- Umar Gbobe Aminu Head, Data Services Department Dr Muhammad A Al Tayyeb tions with supporting illustrations and photographs. Editor Head, Administration & Human Resources Department David Townsend Senussi J Senussi Editorial policy Deputy Editor Head, Energy Studies Department The OPEC Bulletin is published by the PR & Informa- Philippa Webb-Muegge Mohamed Hamel tion Department. The contents do not necessarily Production Head, PR & Information Department reflect the official views of OPEC or its Member Coun- Diana Lavnick Dr Omar Farouk Ibrahim tries. Names and boundaries on any maps should not Design Head, Petroleum Market Analysis Department be regarded as authoritative. No responsibility is Elfi Plakolm Mohammad Alipour-Jeddi Senior Legal Counsel taken for claims or contents of advertisements. Dr Ibibia Lucky Worika Editorial material may be freely reproduced (un- Head, Office of the Secretary General less copyrighted), crediting the OPEC Bulletin as the Indexed and abstracted in PAIS International Karin Chacin source. A copy to the Editor would be appreciated. Printed in Austria by Ueberreuter Print and Digimedia F o r u m working tog ethe The following is an edited version of a speech delivered by European Union (EU) Energy Commissioner, Andris Piebalgs, Andris Piebalgs (pictured) has been EU Energy Commissioner since November 2004. Born in Latvia in at the inaugural session of the 1967, Piebalgs previously headed the Cabinet of the Latvian Commissioner. Before joining the European EU-Gulf Co-operation Council (GCC) Commission, he worked as Ambassador of Latvia in Estonia and to the EU as well as Under-Secretary of State Forum Conference held in Kuwait City, for EU Affairs at the Ministry of Foreign Affairs in Latvia. He has also held the positions of Minister of Education on April 2, 2005. and Minister of Finance in Latvian governments. I am honoured to participate in this inaugural session jointly organised by the European Union, the Energy Ministry of Kuwait and the Gulf Co-operation Council. I am very pleased to visit this region shortly after the begin- ning of my mandate as European Commissioner for Energy and I am grateful to the Minister for Energy for the warm welcome in Kuwait. In my opening speech I would like to briefly touch upon three main issues: first, consider international col- laboration as an effective basis for energy policy devel- opment; second, assess the way towards strengthening of the EU-GCC co-operation, and, third, I would like to outline priorities for the EU relations with the GCC. Today, mutual energy concerns are bringing coun- tries together. Two of the three founding treaties of the European Communities have been based on energy — the European Coal and Steel Community and EURATOM. The new EU constitutional treaty, actually in a ratifi- cation process by EU member states, recognises energy as an issue of common community interest. The energy chapter is focusing, among other things on security of supply. OPEC OPEC bulletin 4/05 4 working tog ethe Common solutions The Gulf Co-operation Council is an excellent illus- tration of how energy challenges cross national borders and domestic politics. In Asia, South America, Africa and within the OECD framework, governments are coming together to look for common solutions to common energy questions, such as security of supply, clean technology, market transparency and environmental protection. I wel- come these developments. The challenges facing both energy producers and con- sumers are complex and numerous. We are more likely to succeed by working together than by working sepa- rately.