Organization of petroleum exporting countries

NAME: SHREYA RACHH

CLASS: FYB.FM SUB: MACRO ECONOMICS ROLL NO: 42 PROF.INCHARGE: PROF.OBEROI

INDEX:

I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII.

ACKNOWLEDGEMENT INTRODUCTION BRIEF HISTORY MISSION MEMBER COUNTRIES- FACTS AND FIGURES SECRETARIAT SECRETARY GENERAL LEGAL OFFICE INTERNAL AUDIT OFID CONCLUSION BIBLIOGRAPHY

Introduction
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The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 1014, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962) suspended its membership from January 2009; Socialist Peoples Libyan Arab Jamahiriya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) suspended its membership from December 1992-October 2007; Angola (2007) and Gabon (19751994). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965.

Brief history
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OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. The 1960s OPECs formation by five oil-producing developing countries in Baghdad in September 1960 occurred at a time of transition in the international economic and political landscape, with extensive decolonisation and the birth of many new independent states in the developing world. The international oil market was dominated by the Seven Sisters multinational companies and was largely separate from that of the former Soviet Union (FSU) and other centrally planned economies (CPEs). OPEC developed its collective vision, set up its objectives and established its Secretariat, first in Geneva and then, in 1965, in Vienna. It adopted a Declaratory Statement of Petroleum Policy in Member Countries in 1968, which emphasised the inalienable right of all countries to exercise permanent sovereignty over their natural resources in the interest of their national development. Membership grew to ten by 1969. The 1970s OPEC rose to international prominence during this decade, as its Member Countries took control of their domestic petroleum industries and acquired a major say in the pricing of crude oil on world markets. On two occasions, oil prices rose steeply in a volatile market, triggered by the Arab oil embargo in 1973 and the outbreak of the Iranian Revolution in 1979. OPEC broadened its mandate with the first Summit of Heads of State and Government in Algiers in 1975, which addressed the plight of the poorer nations and called for a new era of cooperation in international relations, in the interests of world economic development and stability. This led to the establishment of the OPEC Fund for International Development in 1976. Member Countries embarked on ambitious socio-economic development schemes. Membership grew to 13 by 1975. The 1980s After reaching record levels early in the decade, prices began to weaken, before crashing in 1986, responding to a big oil glut and
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consumer shift away from this hydrocarbon. OPECs share of the smaller oil market fell heavily and its total petroleum revenue dropped below a third of earlier peaks, causing severe economic hardship for many Member Countries. Prices rallied in the final part of the decade, but to around half the levels of the early part, and OPECs share of newly growing world output began to recover. This was supported by OPEC introducing a group production ceiling divided among Member Countries and a Reference Basket for pricing, as well as significant progress with OPEC/non-OPEC dialogue and cooperation, seen as essential for market stability and reasonable prices. Environmental issues emerged on the international energy agenda. The 1990s Prices moved less dramatically than in the 1970s and 1980s, and timely OPEC action reduced the market impact of Middle East hostilities in 199091. But excessive volatility and general price weakness dominated the decade, and the South-East Asian economic downturn and mild Northern Hemisphere winter of 199899 saw prices back at 1986 levels. However, a solid recovery followed in a more integrated oil market, which was adjusting to the post-Soviet world, greater regionalism, globalisation, the communications revolution and other high-tech trends. Breakthroughs in producerconsumer dialogue matched continued advances in OPEC/nonOPEC relations. As the United Nations-sponsored climate change negotiations gathered momentum, after the Earth Summit of 1992, OPEC sought fairness, balance and realism in the treatment of oil supply. One country left OPEC, while another suspended its Membership. The 2000s An innovative OPEC oil price band mechanism helped strengthen and stabilise crude prices in the early years of the decade. But a combination of market forces, speculation and other factors transformed the situation in 2004, pushing up prices and increasing volatility in a well-supplied crude market. Oil was used increasingly as an asset class. Prices soared to record levels in mid-2008, before collapsing in the emerging global financial turmoil and economic recession. OPEC became prominent in supporting the oil sector, as part of global efforts to address the economic crisis. OPECs second and third summits in Caracas and Riyadh in 2000 and 2007 established stable energy markets, sustainable development and the
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environment as three guiding themes, and it adopted a comprehensive long-term strategy in 2005. One country joined OPEC, another reactivated its Membership and a third suspended it.

Mission
In accordance with its Statute, the mission of the Organization of the Petroleum Exporting Countries (OPEC) is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.

Member countries
The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization. These countries were later joined by Qatar (1961), Indonesia (1962), Socialist Peoples Libyan Arab Jamahiriya (1962), the

United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) and Angola (2007). From December 1992 until October 2007, Ecuador suspended its membership. Gabon terminated its membership in 1995. Indonesia suspended its membership effective January 2009. Currently, the Organization has a total of 12 Member Countries. The OPEC Statute distinguishes between the Founder Members and Full Members - those countries whose applications for membership have been accepted by the Conference. The Statute stipulates that any country with a substantial net export of crude petroleum, which has fundamentally similar interests to those of Member Countries, may become a Full Member of the Organization, if accepted by a majority of threefourths of Full Members, including the concurring votes of all Founder Members. The Statute further provides for Associate Members which are those countries that do not qualify for full membership, but are nevertheless admitted under such special conditions as may be prescribed by the Conference.

1)

ALGERIA:

Covering an area of around 2.4 million square kilometres, the Republic of Algeria is, territorially, OPECs largest Member Country and the second-largest country in Africa. It is situated in the north of the continent, and shares borders with Morocco, the Western Sahara, Mauritania, Mali, Niger, the Socialist Peoples Libyan Arab Jamahiriya and Tunisia. To the north is the Mediterranean Sea. The country achieved political independence in 1962 after more than a century of colonial rule by France. Algerias struggle for
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independence was one of the most bitter in Africas colonial history. It has a population of more than 35 million, with over 3.5 million living in the capital, Algiers. Arabic is the official language, while French and Berber Tamazight are also spoken. The currency is the dinar. The hydrocarbons sector is the backbone of the economy, accounting for roughly 60 per cent of budget revenues, 30 per cent of the gross domestic product, and more than 95 per cent of export earnings. The countrys other natural resources include iron ore, phosphates, uranium and lead. Algerias President is HE Abdelaziz Bouteflika. It joined OPEC in 1969. Did you know? Algeria was first known as the Kingdom of Numidia, whose most famous kings were Syphax, Massinissa and Jugurta. They ruled during the second and third century BC. Algerias first commercial oil discovery was Edjelleh in 1956, followed immediately by the Hassi Messaoud oil field the same year. Production began in 1958. With an estimated 6.4 billion barrels of proven oil reserves, Hassi Messaoud is Algerias largest oilfield, producing more than 400,000 b/d

Population (million inhabitants) Land area (1,000 sq km) Population density (inhabitants per sq km) GDP per capita ($) GDP at market prices (billion $) Value of exports (billion $) Value of petroleum exports (billion $)

35.40 2,382 15 3,751 132.78 43.69 30.59

Current account balance (billion $) Proven crude oil reserves (billion barrels) Proven natural gas reserves (billion cu. m.) Crude oil production (1,000 b/d) Marketed production of natural gas (billion cu. m.) Refinery capacity (1,000 b/d) Output of petroleum products (1,000 b/d) Consumption of petroleum products (1,000 b/d) Crude oil exports (1,000 b/d) Exports of petroleum products (1,000 b/d) Natural gas exports (billion cu. m.)

0.49 12.20 4,504 1,216 81.43 652 411.6 310 747 232.5 52.67

b/d (barrels per day) cu. m. (cubic metres)

2)

ANGOLA:

Located on the Atlantic coast in the southern part of Africa, the Republic of Angola is the second largest oil producer in Africa. It has a population of over 18 million and is bordered by Zambia to the east, Namibia to the south and the Democratic Republic of
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Congo to the north. Its capital city is Luanda and the national currency is the kwanza. Portuguese is its official language, but Bantu and other African languages are also spoken. Angola gained independence from Portugal in 1975. Angolas impressive economic growth rate is being driven by its oil sector. Oil production and its supporting activities contribute about half of the nations gross domestic product and 90 per cent of exports. Angolas President is HE Dr Jos Eduardo dos Santos. It joined OPEC in 2007. Did you know? Angolas most important river is the Cuanza, from which the countrys currency derives its name. Angola first produced oil from the Benfica oilfield in the Cuanza Basin in 1955. Population (million inhabitants) Land area (1,000 sq km) Population density (inhabitants per sq km) GDP per capita ($) GDP at market prices (billion $) Value of exports (billion $) Value of petroleum exports (billion $) Current account balance (billion $) Proven crude oil reserves (billion barrels) Proven natural gas reserves (billion cu. m.) Crude oil production (1,000 b/d) 18.50 1,247 15 3,717 68.76 40.99 38.81 - 2.24 9.50 310 1,739

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Marketed production of natural gas (billion cu. m.) Refinery capacity (1,000 b/d) Output of petroleum products (1,000 b/d) Consumption of petroleum products (1,000 b/d) Crude oil exports (1,000 b/d) Exports of petroleum products (1,000 b/d) Natural gas exports (billion cu. m.)

0.69 39 46.2 62 1,770 40.8 --

b/d (barrels per day) cu. m. (cubic metres)

3)

IRAN:

Stretching from Turkey and Iraq to Turkmenistan and Pakistan, the Islamic Republic of Iran is the worlds 17th largest country in terms of territory, comprising more than 1.6 million square kilometres. It is one of the worlds oldest continuous major civilizations. It has a population of more than 74 million. The capital, Tehran, is located at the foot of the Alborz Mountains, and is home to around seven million people. Most Iranians speak Farsi, while other languages include Azeri, Kurdish and Luri. Apart from petroleum, the countrys other natural resources include natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc and sulphur. The national currency is the rial.

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The Islamic Republic of Irans President is Mahmoud Ahmadinejad. It is a Founder Member of OPEC. Did you know? The Dizin ski resort near Tehran sits at 3,800 metres and has several downhill runs. The Masjid-i-Solaiman, located in the Khozestan province in the southwest of the Islamic Republic of Iran, was the countrys first oil well. It was drilled in 1908. It is also, the first oil well in the Middle East.

Population (million inhabitants) Land area (1,000 sq km) Population density (inhabitants per sq km) GDP per capita ($) GDP at market prices (billion $) Value of exports (billion $) Value of petroleum exports (billion $) Current account balance (billion $) Proven crude oil reserves (billion barrels)

74.10 1,648 45 4,460 330.46 70.61 55.60 7.93 137.01

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Proven natural gas reserves (billion cu. m.) Crude oil production (1,000 b/d) Marketed production of natural gas (billion cu. m.) Refinery capacity (1,000 b/d) Output of petroleum products (1,000 b/d) Consumption of petroleum products (1,000 b/d) Crude oil exports (1,000 b/d) Exports of petroleum products (1,000 b/d) Natural gas exports (billion cu. m.)

29,610 3,557 175.74 1,474 1,726 1,795 2,232 300.8 5.67

b/d (barrels per day) cu. m. (cubic metres)

4)

KUWAIT:

Located on the Arabian Peninsula bordering Saudi Arabia and Iraq, Kuwait is one of the most densely populated OPEC Member Countries. The Middle Eastern nation comprises an area of 18,000 square kilometres and has a population of over three million. Its official language is Arabic. Kuwait has a prosperous economy. Petroleum accounts for nearly half of its gross domestic product, 93 per cent of export revenues, and 80 per cent of government income. Apart from petroleum, its other natural resources include natural gas and foodstuffs. The Emir of Kuwait is Sheikh Sabah Al-Ahmad Al-Sabah. It is a Founder Member of OPEC. Did you know?

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Failaka Island is considered the most beautiful of Kuwaits islands. Its history dates back to the early Stone Age. In 1938, the Kuwait Oil Company drilled the countrys first commercial oil well in the Al Burqan oilfield. The commercial export of crude oil began in 1946.

Population (million inhabitants) Land area (1,000 sq km) Population density (inhabitants per sq km) GDP per capita ($) GDP at market prices (billion $) Value of exports (billion $) Value of petroleum exports (billion $) Current account balance (billion $) Proven crude oil reserves (billion barrels) Proven natural gas reserves (billion cu. m.) Crude oil production * (1,000 b/d) Marketed production of natural gas (billion cu. m.) Refinery capacity (1,000 b/d) Output of petroleum products (1,000 b/d) Consumption of petroleum products (1,000 b/d) Crude oil exports (1,000 b/d)

3.48 18 194 30,240 105.38 50.24 46.57 27.75 101.50 1,784 2,262 11.49 936 892.7 274 1,348

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Exports of petroleum products (1,000 b/d) Natural gas exports (billion cu. m.)

673.5 --

* including share of production from Neutral Zone b/d (barrels per day) cu. m. (cubic metres)

5)

SAUDI ARABIA:

The Middle Eastern Kingdom of Saudi Arabia straddles the Arabian Peninsula, bordered by Jordan, Kuwait and Iraq in the north and Oman and Yemen in the south. It is the 14th largest country in the world covering around two million square kilometres, making it the second largest OPEC Member Country. Saudi Arabia has a population of more than 25 million, more than three and a half million of whom live in the capital, Riyadh. Arabic is the official language. Saudi Arabia possesses 20 per cent of the worlds proven petroleum reserves and ranks as the largest exporter of petroleum. The petroleum sector accounts for roughly 75 per cent of budget revenues, 45 per cent of gross domestic product, and 90 per cent of export earnings. Apart from petroleum, the Kingdoms other natural resources include natural gas, iron ore, gold, and copper. The national currency is the riyal.

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The Sovereign is the Custodian of the Two Holy Mosques King Abdullah Bin Abdulaziz Al-Saud. Saudi Arabia is a Founder Member of OPEC. Did you know? Saudi Arabias is home to the worlds largest continuous sand desert the Rub Al-Khali, or Empty Quarter. Oil was first struck in Saudi Arabia in March 1938, at a depth of 1,440 metres in the Dammam oilfield. Population (million inhabitants) Land area (1,000 sq km) Population density (inhabitants per sq km) GDP per capita ($) GDP at market prices (billion $) Value of exports (billion $) Value of petroleum exports (billion $) Current account balance (billion $) Proven crude oil reserves (billion barrels) Proven natural gas reserves (billion cu. m.) Crude oil production *(1,000 b/d) Marketed production of natural gas (billion cu. m.) Refinery capacity (1,000 b/d) Output of petroleum products (1,000 b/d) Consumption of petroleum products (1,000 b/d) 25.40 2,150 12 14,552 369.67 175.53 157.41 20.48 264.59 7,920 8,184 78.45 2,109 1,911.0 1,405

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Crude oil exports (1,000 b/d) Exports of petroleum products (1,000 b/d) Natural gas exports (billion cu. m.)

6,268 1,008.4 --

* including share of production from Neutral Zone b/d (barrels per day) cu. m. (cubic metres)

6)

United Arab Emirates :

The United Arab Emirates comprises seven emirates - Abu Dhabi, Ajman, Dubai, Fujairah, Ras AlKhaimah, Sharjah and Umm Al-Quwain - located along the southeast coast of the Arabian Peninsula. The country covers 84,000 square kilometres and has a population of around four and a half million. More than one million people live in the capital, Abu Dhabi. Arabic is the countrys official language. About 30 per cent of the countrys gross domestic product is directly based on oil and gas output. Since the discovery of oil in the UAE, the country has become a modern state with a high standard of living. The currency is the dirham. The United Arab Emirates President is Sheikh Khalifa Bin Zayed Al-Nahyan. It joined OPEC in 1967. Did you know? Desert Park in the Sharjah Emirate is a centre for the breeding of the endangered Arabian leopard. It is thought that very few of these cats exist in the wild. The first commercial oil was discovered in 1958 onshore in the Bab-2 well and offshore at Umm Shaif. Population (million inhabitants) 4.62

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Land area (1,000 sq km) Population density (inhabitants per sq km) GDP per capita ($) GDP at market prices (billion $) Value of exports (billion $) Value of petroleum exports (billion $) Current account balance (billion $) Proven crude oil reserves (billion barrels) Proven natural gas reserves (billion cu. m.) Crude oil production (1,000 b/d) Marketed production of natural gas (billion cu. m.) Refinery capacity (1,000 b/d) Output of petroleum products (1,000 b/d) Consumption of petroleum products (1,000 b/d) Crude oil exports (1,000 b/d) Exports of petroleum products (1,000 b/d) Natural gas exports (billion cu. m.)

84 55 49,782 229.97 174.73 58.66 - 7.02 97.80 6,091 2,242 48.84 466 400.4 235 1,953 374.1 15.21

b/d (barrels per day) cu. m. (cubic metres)

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7)

Nigeria :

The most populous country within OPEC, Nigeria has over 150 million inhabitants. Located on the Gulf of Guinea on Africas western coast, Nigeria covers an area of 924,000 square kilometres. Abuja, the capital since 1991, has a population of more than one million. English is Nigerias official language, although many local languages such as Hausa, Yoruba, Igbo and Ijaw are also spoken. Apart from petroleum, Nigerias other natural resources include natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc and arable land. The capital-intensive oil sector provides 20 per cent of gross domestic product, 95 per cent of foreign exchange earnings, and about 65 per cent of budgetary revenues. Its currency is the naira. Nigerias President is Dr. Goodluck Ebele Jonathan. The country joined OPEC in 1971. Did you know? Conservationists say that Nigerias unique rainforest region is amongst the richest in Africa. The country is also home to numerous important game reserves, such as the Yankari and Kainji national parks. Oil was first discovered in Oloibiri, in Nigerias Bayelsa State, in 1956. Population (million inhabitants) Land area (1,000 sq km) Population density (inhabitants per sq km) GDP per capita ($) GDP at market prices (billion $) Value of exports (billion $) 156.04 924 169 1,064 166.00 33.44

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Value of petroleum exports (billion $) Current account balance (billion $) Proven crude oil reserves (billion barrels) Proven natural gas reserves (billion cu. m.) Crude oil production (1,000 b/d) Marketed production of natural gas (billion cu. m.) Refinery capacity (1,000 b/d) Output of petroleum products (1,000 b/d) Consumption of petroleum products (1,000 b/d) Crude oil exports (1,000 b/d) Exports of petroleum products (1,000 b/d) Natural gas exports (billion cu. m.)

26.47 20.05 37.20 5,292 1,842 23.21 445 249.4 225 2,160 12.1 15.99

b/d (barrels per day) cu. m. (cubic metres)

SECRETARIAT
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The OPEC Secretariat is the executive organ of the Organization of the Petroleum Exporting Countries (OPEC). Located in Vienna, it also functions as the Headquarters of the Organization, in accordance with the provisions of the OPEC Statute. It is responsible for the implementation of all resolutions passed by the Conference and carries out all decisions made by the Board of Governors. It also conducts research, the findings of which constitute key inputs in decision-making. The Secretariat consists of the Secretary General, who is the Organizations Chief Executive Officer, as well as such staff as may be required for the Organizations operations. It further consists of the Office of the Secretary General, the Legal Office, the Research Division and the Support Services Division. The Research Division is comprised of the Data Services, Petroleum Studies, Energy Studies and Multilateral Relations departments. The Support Services Division includes Public Relations & Information, Finance & Human Resources and Administration & IT Services departments. The Secretariat was originally established in 1961 in Geneva, Switzerland. In April 1965, the 8th (Extraordinary) OPEC Conference approved a Host Agreement with the Government of Austria, effectively moving the Organizations headquarters to the city of Vienna on September 1, 1965.

SECRETARY GENERAL
The Secretary General is the legally authorized representative of the Organization and Chief Executive of the Secretariat. In this capacity, he administers the affairs of the

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Organization in accordance with the directions of the Board of Governors. The Conference appoints the Secretary General for a period of three years, which may be renewed once for the same period. This appointment takes place upon nomination by Member Countries. The Secretary General is assisted in the discharge of his duties by a team of officers and staff including two Directors responsible for the Research Division and Support Services Division, seven Heads of Department, the General Legal Counsel, Head of the Office of the Secretary General and the Internal Auditor.

LEGAL OFFICE:
It has the responsibility of providing legal advice to the Secretary General and supervising the Secretariats legal and contractual affairs. It also evaluates legal issues of concern to the Organization. The Office, which reports to the Secretary General, is headed by the General Legal Counsel, Dr. Ibibia Lucky Worika.

INTERNAL AUDIT:
The Internal Auditor independently ascertains whether the ongoing processes for controlling financial and administrative operations at the Secretariat are adequately designed and functioning in an effective manner. In the course of his job, he reports directly to the Secretary General. The position is currently occupied by Mr. Ali Omar.

OFID
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The OPEC Fund for international development

Sovereigns and Heads of State of OPEC Member Countries (MCs) do not meet regularly. However, when they do meet, the impact is felt beyond the confines of the Organizations MCs and for decades too. Such meetings also, have the tendency to affect lives in a positive way. This could be said to be the effect their first meeting in 1975 has had on the worlds poor countries through the OPEC Fund for International Development, (OFID). Established as a multilateral development finance institution to promote cooperation between Member States of OPEC and other developing countries, OFID was conceived at the Summit of the Sovereigns and Heads of State of the OPEC Member Countries (MCs) held in the Algerian capital, Algiers, in March 1975. The Solemn Declaration, issued by the Summit, reaffirmed the natural solidarity which unites OPEC MCs with other developing countries in their struggle to overcome under-development, and called for measures to strengthen cooperation with these countries. In this spirit, OFID was established in January 1976, as a collective financial facility to consolidate the assistance extended by its Member Countries namely Algeria, Gabon, Indonesia, Islamic Republic of Iran, Iraq, Kuwait, SP Libyan AJ, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela. OFIDs resources are additional to those already made available by OPEC MCs through a number of bilateral and multilateral channels. The resources of OFID consist mainly of voluntary contributions by OPEC MCs and income derived from OFIDs investments and loans (interest and service charges). OFIDs operations were launched in August 1976 with initial resources of about $800 million. This amount has since then been replenished three times. It has also been further increased by the profits accruing to seven OPEC Member Countries

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through the sale of gold held by the International Monetary Fund (IMF). Resources (31 December 2009) Contributions 1 $ million 2,463

Reserve 3,184 All non-OPEC developing countries are, in principle, eligible for OFID assistance. However, the least developed and other lowincome countries are accorded priority and, therefore, receive a larger share. Over the years, OFID has spread its financing to 125 countries, of which 51 are in Africa, 42 in Asia, 28 in Latin America and the Caribbean, and four in Europe. In the public sector, OFID has implemented 16 lending programs since its inception. The 17th Lending Programme, approved for a three-year duration, became effective 1 January 2008. By the end of March 2010, a cumulative amount of $8,703m had been committed for 1,264 public sector loans, of which $5,221m had been disbursed. As of 1 January 2009, 74 per cent of outstanding loans were with Low Income countries and 50 per cent of all commitments were to Africa. Under the Private Sector Facility established in 1998, 144 operations have been approved in support of private entities in Africa, Asia, Latin America and Europe. By the end of March 2010, $1,190m had been committed and $525m disbursed. In 2006, a Trade Financing program was launched. By the end of March 2010, $578m in lines of credit and $619m in risk-sharing guarantees had been approved and $285m had been disbursed. In the framework of grants, assistance is extended to social and humanitarian development operations through three regular grant programs; Technical Assistance, Research and Similar Activities and Emergency Relief Aid. OFID has also established special grant accounts to respond to specific global needs. These include grants for the establishment of the Common Fund for Commodities, in addition to a Special Account for HIV/AIDS Operations and a Special Account for Palestine. Intermittently, OFID extended special grants in support of contemporary issues, such as the grant for the establishment of IFAD and the
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food crisis in Africa. By the end of March 2010, 1,205 grants, amounting to $483m, had been extended. In addition, OFID channeled $972m to two international institutions: it has channeled OPEC Members contributions to the initial capital and first replenishment of IFADs resources and made irrevocable transfers in the name of seven OPEC Members to the Trust Fund of the IMF. OFIDs total approved commitments (including grants and contributions to other institutions) as at the end of March 2010 stood at $11,926m.

Conclusion
The establishment and growth of OPEC is the history of the growing sovereignty of oil producing countries over their natural resources. Through the collaboration of its Member Countries, and through cooperative relationships with other international organizations, OPEC has consistently looked for ways to fulfill its mission of coordinating and unifying the petroleum policies of its Member Countries, and ensuring the stabilization of oil markets. A summary of its mission, and the events leading to the establishment of OPEC, can be found in the
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Secretariats General Information booklet. It also includes a brief description of the Organizations structure, membership and leadership over the years.

BIBLIOGRAPHY:
1)

WWW.OPEC.ORG

2)

en.wikipedia.org/wiki/OPEC

3)

petroleumindex.com

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