2 / 40
ORGANIZATION OFARAB PETROLEUM EXPORTING COUNTRIES (OAPEC)
OAPEC’S ORGANS
The Organization of Arab Petroleum Exporting Countries (OAPEC) was
founded on the basis of the agreement signed in Beirut, Lebanon on 9 January
1968 between the governments of Kingdom of Saudi Arabia, the State of Kuwait
and the (then) Kingdom of Libya. The agreement stipulates that the Organization
shall be domiciled in the City of Kuwait.
The principal objective of the Organization is the cooperation of the members
in various forms of economic activity in the petroleum industry, the determination
of ways and means of safeguarding the legitimate interests of its member countries
in this industry, individually and collectively, the unification of efforts to ensure the
flow of petroleum to its markets on equitable and reasonable terms, and providing
appropriate environment for investment in the petroleum industry in member
countries.
In 1970 the United Arab Emirates, the State of Qatar, the Kingdom of Bahrain
and the Republic of Algeria joined the Organization, followed by the Syrian Arab
Republic and the Republic of Iraq in 1972, Arab Republic of Egypt in 1973, then the
Republic of Tunisia in 1982 (its activities stopped since 1987). Any Arab country
which derives a significant share of its national income from petroleum is eligible for
membership in OAPEC upon the approval of three-quarters of the member countries,
including all three founding members.
<
OAPEC-Sponsored Ventures:
OAPEC has sponsored the creation of four companies: The Arab Maritime
Petroleum Transport Company (AMPTC), established in 1972 with headquarters in Kuwait City, the Arab
Shipbuilding and Repair Yard Company (ASRY) established in 1973 with headquarters in Bahrain, the Arab
Petroleum Investments Corporation (APICORP) established in 1974 with headquarters in Khobar, Saudi
Arabia, the Arab Petroleum Services Company (APSC) established in 1975 with headquarters in Tripoli, Libya.
The Organization carries out its activities through its four organs:
<
Ministerial Council:
The Ministerial Council is the supreme authority of the
Organization, responsible for drawing up its general policy.
<
Executive Bureau:
The Executive Bureau is composed of one representative
from each of the member countries, drawing recommendations and suggestions
to the Council, reviewing the Organization’s draft annual budget and submitting
it to the Council, it also adopts the regulations applicable to the staff of the
General Secretariat. The resolutions of the Executive Bureau are issued by the
majority of two- thirds of all members.
<
General Secretariat:
The General Secretariat of OAPEC plans, administers,
and executes the Organization’s activities in accordance with the objectives
stated in the agreement and directives of the Ministerial Council. The General
Secretariat is headed by the Secretary General. The Secretary General is
appointed by resolution of the Ministerial Council for a tenor of three years
renewable for similar period(s). The Secretary General is the official spokesman
and legal representative of the Organization and is accountable to the Council.
The Secretary General directs the Secretariat and supervises all aspects of its
activities, and is responsible for the tasks and duties as directed by the Ministerial
Council. The Secretary General and all personnel of the Secretariat carry out
their duties in full independence and in the common interests of the Organization
member countries. The Secretary General and the Assistant Secretaries General
possess in the territories of the Organization members all diplomatic immunities
and privileges.
<
Judicial Tribunal:
The protocol of the Judicial Tribunal was signed in Kuwait
on 9 May 1978 and came into effect on 20April 1980. The Tribunal is competent
to consider all disputes related to the interpretation and application of OAPEC’s
establishment agreement, as well as disputes arising between two or more
member countries concerning petroleum operations.