May 2013, ISSN 0474—6279 4 R &Dforum 14 Given Newimpetus Annual Training Course in PDF Format
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Under the Patronage of His Excellency Hani Abdulaziz Hussain Kuwait Minister of Oil Society of Petroleum Engineers K13 20Kuwait Oil & Gas ShowGS and Conference Kuwait @ MISHREF8 -10 InternationalFair, www.kogs2013.com October SUPPORTED BY: 2013 EXHIBITION WORLDWIDE FAR EAST CONFERENCE ORGANISERS CO-ORDINATORS CO-ORDINATORS ORGANISERS [email protected] [email protected] [email protected] Society of Petroleum Engineers BAHRAIN LONDON SINGAPORE [email protected] DUBAI KOGS13_advert_230x280.indd 1 22/01/2013 19:45 Cooperation central to stability as Ministers meet Commentary OPEC’s Oil/Energy Ministers will gather in strong today as it was when the Organization Vienna on May 31 for the 163rd Meeting of was created more than half a century ago in the Conference. They will review the state of 1960. the oil market and the world economy since In examining the outlook for the market, their last meeting on December 12, as they what will be uppermost in the minds of OPEC’s assess the outlook for the rest of this year Ministers is the need to ensure stable prices and beyond. at fair and reasonable levels in the second They will notice a downward price trend half of the year. since the winter, as well as continued volatil- They have been well briefed for the occa- ity. Indeed, OPEC’s Reference Basket price fell sion by a series of internal meetings over the for the second month in a row in April, and, past month involving, in particular, OPEC’s when this issue of the OPEC Bulletin went to Board of Governors and Economic Commission press, it was $99.15/barrel. Board and backed up by insightful reports and Why is there this present price weakness? analyses prepared by the Secretariat. The latest OPEC Monthly Oil Market Report, The Ministers’ deliberations will be carried released three weeks ago, put it as follows: out in the interests of all parties in the indus- “Several key factors continue to pressure try, as well as in support of steady growth in crude oil prices, including weak economic data the world economy. from the world’s two largest oil consumers, the However, the concluding message from the United States and China, which necessitated Conference will be the familiar one that, for a cut in this year’s oil demand forecasts by all parties to benefit from price stability, they major energy agencies. Additionally, ongoing must all contribute to it in whatever way they Euro-zone economic turmoil and record levels can. This includes not just OPEC’s Member of US crude oil inventories have contributed Countries, but also non-OPEC producers, con- greatly to the downturn in crude oil prices.” sumers, the international oil companies and It added that speculative activity had mag- the financial institutions. We all have a part nified the bearish sentiment, adding to the to play if we wish to enjoy the fruits of an or- price weakness. derly, stable oil market. Undoubtedly, these are difficult times for Most importantly, the cement that binds all the market. But what is certain — and, in fact, this together is dialogue and cooperation, and commendable — is that OPEC’s commitment this again is applicable to all parties. OPEC to order and stability in the international oil has always been a strong advocate of this, in market will guide their deliberations and even- the knowledge that this is essential to achiev- tual decisions. This commitment remains as ing our goals in the oil market. Forum 4 Annual training course given new impetus Contents Workshop 13 OPEC hosts workshop on physical and financial energy markets R & D Forum 14 OPEC Secretariat convenes first-ever Research and Development Forum Country Profile 16 KUWAIT — small in size, huge in Shutterstock stature! Publishers OPEC Membership and aims OPEC OPEC is a permanent, intergovernmental Organization of the Petroleum Exporting Countries Organization, established in Baghdad, on September Helferstorferstraße 17 10–14, 1960, by IR Iran, Iraq, Kuwait, Saudi Arabia 1010 Vienna and Venezuela. Its objective — to coordinate Austria and unify petroleum policies among its Member Telephone: +43 1 211 12/0 Countries, in order to secure fair and stable prices OPEC bulletin OPEC Telefax: +43 1 216 4320 for petroleum producers; an efficient, economic and Contact: The Editor-in-Chief, OPEC Bulletin regular supply of petroleum to consuming nations; Fax: +43 1 211 12/5081 and a fair return on capital to those investing in the E-mail: [email protected] industry. The Organization comprises 12 Members: Cover Website: www.opec.org Qatar joined in 1961; Libya (1962); United Arab This month’s cover shows the entrance of the North Kuwait Collaboration Center (see feature Emirates (Abu Dhabi, 1967); Algeria (1969); Nigeria on p16–31). Web site: www.opec.org (1971); Angola (2007). Ecuador joined OPEC in Visit the OPEC Web site for the latest news and infor- 1973, suspended its Membership in 1992, and mation about the Organization and back issues of the rejoined in 2007. Gabon joined in 1975 and left in OPEC Bulletin which are also available free of charge 1995. Indonesia joined in 1962 and suspended its Vol XLIV, No 4, May 2013, ISSN 0474—6279 in PDF format. Membership on December 31, 2008. Awards 32 Two generations of Nigerian Petroleum Ministers honoured in Vienna Newsline 36 Algeria planning to double domestic refining capacity Angola looking to increase oil production to two million b/d (p37) Libya’s oil production expansion spurring economic growth (p38) Nigeria looks to Asia as crude oil exports to US fall to 1985 levels (p39) Qatar’s QAPCO prides itself on commitment to sustainability (p40) Saudi Arabia likely to opt for variety of different nuclear plants (p41) Shell wins major deal to treat UAE’s Bab sour gas reserves (p42) Focus on Africa 44 Venezuela manages to stem decline in production of crude, natural gas Saudi Arabia Egypt liquids (p43) N O R T H S U D A N Port Sudan Oil pipeline Khartoum Refinery Eritrea Chad Refinery D a r f u r Ethiopia Oil deposits S O U T H S U D A N Central African Republic Juba South Sudan restarts Democratic Republic of the Congo Kenya Uganda Shutterstock oil exports through Sudan OPEC Fund News 48 Sustainable Energy for All initiative gets substantial Noticeboard 52 boost from UN-World Bank partnership Puzzle 53 Market Review 55 OPEC Publications 61 Secretariat officials Contributions Editorial staff The OPEC Bulletin welcomes original contributions on Editor-in-Chief/Editorial Coordinator Secretary General Ulunma Angela Agoawike the technical, financial and environmental aspects Abdalla Salem El-Badri Editor of all stages of the energy industry, research reports Head, Finance & Human Resources Department Jerry Haylins In charge of Administration and IT Services and project descriptions with supporting illustrations Associate Editors Keith Aylward-Marchant, James Griffin, Department and photographs. Alvino-Mario Fantini, Maureen MacNeill, Alejandro Rodriguez Scott Laury Head, Energy Studies Department Editorial policy Production In charge of Research Division The OPEC Bulletin is published by the OPEC Diana Lavnick Oswaldo Tapia Design & Layout Secretariat (Public Relations and Information Head, Petroleum Studies Department Elfi Plakolm Dr Hojatollah Ghanimi Fard Department). The contents do not necessarily reflect Photographs (unless otherwise credited) Head, PR & Information Department the official views of OPEC nor its Member Countries. Diana Golpashin and Wolfgang Hammer Ulunma Angela Agoawike Names and boundaries on any maps should not be Distribution Mahid Al-Saigh General Legal Counsel regarded as authoritative. No responsibility is taken Asma Muttawa for claims or contents of advertisements. Editorial Head, Data Services Department Dr Adedapo Odulaja material may be freely reproduced (unless copyright- Head, Office of the Secretary General ed), crediting the OPEC Bulletin as the source. A copy Indexed and abstracted in PAIS International Abdullah Al-Shameri to the Editor would be appreciated. Printed in Austria by Ueberreuter Print GmbH Annual training course given new impetus Abdalla Salem El-Badri (third right), OPEC Secretary General, with OPEC Management officials (r–l): Asma Muttawa, General Legal Counsel; Dr Mohammad Taeb, Environmental Coordinator; Oswaldo Tapia, Head, Energy Studies Department, in charge What started as an idea by the OPEC Board of Governors in of Research Division; Alejandro Rodriguez Rivas, Head, Finance and HR Department, in charge of the late 1990s has rapidly become an entity in its own right. Administration and IT Services Department; Dr Adedapo Odulaja, The Multi-Disciplinary Training Course, held annually at the Head, Data Services Department; Abdullah Al-Shameri, Head, Office of the Secretary General. Organization’s Secretariat in Vienna, continues to evolve. The OPEC Bulletin’s Maureen MacNeill reports from the 2013 event. OPEC bulletin 5/13 bulletin OPEC 4 OPEC’s commitment to a healthy, productive oil indus- try with secure supply and reasonable prices involves tending to its future needs as much as those of the present. Nowhere is this more true than with human resources. Indeed, for many years, it has been observed that there is a serious shortage of dynamic, qualified people enter- ing the industry and, equally importantly, staying there and devoting their careers to it. OPEC has been active in addressing this issue, and this has seen the Secretariat in Vienna running a Dr Mohammad series of annual Multi-Disciplinary Training Courses Taeb, Environmental Coordinator and th (MDTCs). The 13 course in this series was held on Chairman of the OPEC April 15–18. Academic Committee. 13 Oswaldo Tapia, Head of OPEC’s Energy Studies Department, in charge of the Research Division, addressed the MDTC on behalf of the OPEC Secretary General. OPEC bulletin 5/ bulletin OPEC 5 L–r: Elio Rodriguez, Refinery and Products Analyst; Dr Mohammad “We consider this course to be the starting point of and exciting careers, making a positive impact on both Taeb; Dr Joerg Spitzy; our relationship with you and your relationships among OPEC and your home countries.” Senior Research Analyst; Dr Aziz Yahyai; Senior yourselves.