He knows there’s a well out there. So do we. Contents www.omv.com Why are nine out of ten appraisal wells drilled by OMV Exploration & Production GmbH successful? Just as the camel finds water where others see only sand, we find oil where others can‘t. But it‘s not only us to use the most advanced technology: our colleagues from OMV Gas & Power GmbH do so too when transporting the gas we have produced. OMV is not only a pioneer in the Nabucco Gas Pipeline project, but is also fully committed to being a pro- gressive player in the LNG business. OMV places its competence and knowhow into action for a secured energy supply. Move & More. Kamel_230x280mm.indd 1 13.05.2009 16:07:41 Uhr The road to (and from) Copenhagen The road to (and from) Copenhagen from) (and to road The In December the world will meet in Copenhagen for It should also be remembered that the development Commentary the latest round of climate change negotiations. It is an and deployment of these types of technologies requires event that has already been discussed and debated in the coordinated support of governments, and given that great detail. Not a day goes by without some reference Annex I countries have the financial and technological to it in the international media. It is that important. And capabilities, there is a need for them to assume leader- thus it is essential that we remind ourselves of the core ship. issues; those that need to remain the basis of any out- This is nothing new. Indeed, the Kyoto Protocol come from the meeting. states that “developed countries should take the lead in Firstly, there is the need to reduce overall global international action to combat climate change by fully greenhouse gas emissions. implementing their obligations of reducing emissions Secondly, we need to deliver a sustainable energy fu- and of providing additional financing and the transfer ture that enables both developed and developing coun- of cleaner, low-emission and cost-effective technolo- tries to reap the benefits of economic development and gies to developing countries.” The Bali Action Plan of social progress. December 2007 also calls for enhanced action on tech- And thirdly, we must ensure mitigation response nology transfer. measures and emission reduction commitments are fair The crucial issue of “obligations” also brings to mind and just, taking into account the historical responsibil- the importance of looking at cumulative CO2 emissions ity of Annex I countries, the huge developmental needs from a historical perspective. In 2006 Annex I countries of developing countries, as well as the adverse impacts accounted for almost 80 per cent of cumulative CO2 emis- of climate change and of response measures, including sions since 1900, and by 2030 they will still have con- the adverse impacts on fossil fuel exporting countries. tributed two-thirds. The goal is to effectively marry these issues to fa- Bringing this together, it is essential that these core cilitate the full and sustained implementation of the UN issues are taken into account and that the future focuses Framework Convention on Climate Change (UNFCCC), and on the overall goal of sustainable development, recogniz- to enable the post-2012 Annex I commitment period to ing that priorities might vary for different people. be a success. For developing countries, poverty alleviation, eco- From the perspective of reducing emissions, it is nomic development and social progress are the overriding crucial to be comprehensive and take into account all priorities and it is clear that people in such nations will greenhouse gases. It should be remembered that 43 per need more energy, not less, to meet these needs. Climate cent of anthropogenic greenhouse gas emissions stem change is providing these countries with yet more chal- from gases other than carbon dioxide (CO2). And the lenges and additional vulnerabilities, although they have world should draw on a variety of cost-effective abate- contributed little to the current situation. ment options, including reducing emissions from defor- As we approach Copenhagen, we must remember the estation and forest degradation, utilizing carbon sinks, spirit that brought together the UNFCCC and the Kyoto and taking advantage of the full range of technologies Protocol. We reached agreement after years of negotia- available. tion because everyone had a stake, but perhaps more From the technology standpoint, it is evident, given importantly, everyone perceived that their issues were that fossil fuels are expected to remain the mainstay of recognized and taken on board. the global energy mix for the foreseeable future, that any This must be brought to the fore in Copenhagen. serious effort to achieve low net emission paths must in- Agreements reached should be comprehensive and bal- clude the use of cleaner fossil fuel technologies, such as anced, taking into account the past, present and the fu- carbon capture and storage (CCS). A number of issues ture; the fulfilling of current commitments; and the needs related to CCS are discussed on page 20 of this issue. of those least able to help themselves. On the Move 4 Austria and OPEC amend Headquarters Agreement in build-up to move to new premises (p6) Contents A new chapter begins ... (p8) Interviews: Michael Spindelegger, Austrian Foreign Minister Ambassador Ernst-Peter Brezovszky Closing the gate on Obere Donaustraße 93 Member Country Visit 10 Feature 14 Road to peace Nigeria pledges continued Nigerian amnesty support for OPEC objectives brings ray of hope for lasting end to hostilities in Niger Delta Feature 20 Copenhagen or bust? Agreement on CCS seen Spotlight 26 as vital to success of UN climate change talks The sovereign wealth of nations: Turning foreign earnings into investments Publishers OPEC Membership and aims OPEC OPEC is a permanent, intergovernmental Organization of the Petroleum Exporting Countries Organization, established in Baghdad, on September Obere Donaustrasse 93 10–14, 1960, by IR Iran, Iraq, Kuwait, Saudi Arabia 1020 Vienna, Austria and Venezuela. Its objective — to coordinate Telephone: +43 1 211 12/0 and unify petroleum policies among its Member Telefax: +43 1 216 4320 Countries, in order to secure fair and stable prices OPEC bulletin OPEC Contact: The Editor-in-Chief, OPEC Bulletin for petroleum producers; an efficient, economic and Fax: +43 1 214 9827 regular supply of petroleum to consuming nations; E-mail: [email protected] and a fair return on capital to those investing in the industry. The Organization comprises 12 Members: Cover Web site: www.opec.org Qatar joined in 1961; SP Libyan AJ (1962); United This month’s cover captures the serenity of the Niger Visit the OPEC Web site for the latest news and infor- Arab Emirates (Abu Dhabi, 1967); Algeria (1969); Delta region of Nigeria (see feature on pp14–19). Photo: AP Photo. mation about the Organization and back issues of the Nigeria (1971); Angola (2007). Ecuador joined OPEC OPEC Bulletin which are also available free of charge in 1973, suspended its Membership in 1992, and in PDF format. rejoined in 2007. Gabon joined in 1975 and left in 1995. Indonesia joined in 1962 and suspended its Vol XXXX, No 7, October/November 2009, ISSN 0474–6279 Hard copy subscription: $70/year Membership on December 31, 2008. News Feature 32 A winning bid Iraq hoping to turn corner with Rumaila oil field agreement Newsline 36 Iran launches oil exchange Qatar Airways plane first to fly on gas-blend fuel (p38) House of Wisdom — Saudi Arabia inaugurates state-of-the-art university (p40) Dubai Metro — an Emirate takes on ‘mega-city’ status with new urban rail network (p44) OPEC Member Country news in brief (p48) ‘Lula’ wins OPEC logo design competition (p51) Appointments 52 Secretary General’s Diary 53 Arts & Life 54 Reflecting upon Germany’s Reaching new heights Places in the heart centuries-old heritage (p58) in the lake district (p60) OPEC Fund News 62 ‘Margarita Declaration’ calls for closer regional cooperation — Venezuela hosts second Africa-South Market Review 66 America Summit Noticeboard 78 Secretariat Visits 79 Corrigendum In the August/September issue of the OPEC Bulletin, we mistakenly identified Ali Obaid Al Yabhouni, who is OPEC Governor of the United Arab Emirates, as Governor of Kuwait (page 8). We apologize for any inconvenience caused. OPEC Publications 80 Secretariat officials Contributions Editorial staff Secretary General The OPEC Bulletin welcomes original contributions on Editor-in-Chief Abdalla Salem El-Badri Dr Omar Farouk Ibrahim the technical, financial and environmental aspects Director, Research Division Editorial Coordinator In charge of Multilateral Relations Department of all stages of the energy industry, research reports Ulunma Angela Agoawike Dr Hasan M Qabazard and project descriptions with supporting illustrations Editor Head, PR & Information Department and photographs. Jerry Haylins Dr Omar Farouk Ibrahim Associate Editors Head, Petroleum Studies Department Keith Aylward-Marchant, James Griffin, Mohammad Alipour-Jeddi Editorial policy Alvino-Mario Fantini, Steve Hughes General Legal Counsel The OPEC Bulletin is published by the PR & Informa- Production Diana Lavnick and Andrea Birnbach Dr Ibibia Lucky Worika tion Department. The contents do not necessar- Head, Data Services Department Design & Layout ily reflect the official views of OPEC nor its Member Elfi Plakolm Fuad Al-Zayer Photographs (unless otherwise credited) Head, Finance & Human Resources Department Countries. Names and boundaries on any maps Diana Golpashin In charge of Administration and IT Services should not be regarded as authoritative. No respon- Distribution Department sibility is taken for claims or contents of advertise- Mahid Al-Saigh Alejandro Rodriguez ments. Editorial material may be freely reproduced Head, Energy Studies Department (unless copyrighted), crediting the OPEC Bulletin Oswaldo Tapia Head, Office of the Secretary General as the source. A copy to the Editor would be Indexed and abstracted in PAIS International Abdullah Al-Shameri appreciated.