The Organization of Arab Petroleum Exporting Countries (OAPEC) is a multi-governmental organisation Arab States formed for the cooperation and coordination of energy policies among oil producing Arabs. It was established by Kuwait, Libya and Saudi Arabia on January 9, 1968. Kuwait was chosen as headquarter.
The basic concern of the organisation is to develop the infrastructure as well as prosperity of World’s Petroleum Industry by nurturing cooperation and coordination among member states. It also explores the possibilities of cooperation among its members, and net oil importing industrialized and developing countries. It also nurtures the close interaction that facilitates accession to new scientific and technological developments in the field of energy.
The objective behind the formation of the organisation is to safeguarding economic aspects of oil industry, to immune the potentiality of oil embargo of Arab world, to provide legality of collective efforts within the industry, and to create customer-friendly market on fair & reasonable rates.
Governing Bodies of Organization of Arab Petroleum Exporting Countries (OAPEC)
- The Council of Ministers: It is the sovereign authority of the Organization which is responsible for pulling up its general policy, directing its activity, and laying down the rules governing it. It is composed of the ministers of petroleum of each of the member countries or an official enjoying a comparable degree of responsibility for petroleum affairs. The chairmanship of the Council rotates annually among the representatives in the alphabetical order of their countries.
- The Executive Bureau: It assists the Ministerial Council as a subordinate which is composed of one representative from each of the member countries, and are appointed by the country concerned.
- General Secretariat: It articulate, facilitates, arbitrates, and executes the organisational activities as per stated in the Agreement establishing OAPEC, and with the resolutions and directives of the Ministerial Council. Its administration is assumed by a Secretary General.
- The Judicial Board: It is advisory body that give its suggestion on issues referred to it by the Ministerial Council. Its judgments are considered final and binding on the parties of the dispute and shall be enforceable in territories of member countries.
Organisational Goals of OAPEC
OAPEC was formed with an aim to promote economic cooperation internationally within the ambit of petroleum industries. There are four basic goals which are given below:
- To realize close national ties.
- To determine the means and the ways of safeguarding the interests of member state
- To unify efforts for maintaining a flow of petroleum to the markets in terms of profits
- To create healthy environment to the member states in investment