OPEC is a permanent intergovernmental organization consisting of 12 oil producing countries located in Africa, Asia, and South America. It was founded in 1960 in Baghdad, Iraq by 5 countries and seeks to coordinate oil policies and stabilize oil prices. OPEC members hold over 80% of global crude oil reserves and collectively produce over 29 million barrels per day. The organization meets twice yearly to set production quotas and policies aimed at maintaining stable oil markets.

1. ORGANIZATION OF PETROLEUM
EXPORTING COUNTRIES

2. ABOUT OPEC
 It is a permanent intergovernmental organization.
 currently consisting of 12 oil producing and
exporting countries.
 spread across three continents America, Asia and
Africa.
 Oil is the main marketable commodity and foreign
exchange earner.
 OPEC was formed at a meeting held on September 14,
1960 in Baghdad, Iraq.
 Five Founder Members are: Iran, Iraq, Kuwait, Saudi
Arabia and Venezuela.
 OPEC was registered with the United Nations
Secretariat on November 6, 1962.

3. OBJECTIVES
• The organization’s principal objectives are:
• To co-ordinate and unify the petroleum policies of the
Member Countries .
– To determine the best means for safeguarding their
individual and collective interests.
• To seek ways and means of ensuring the stabilization of
prices in international oil markets, with a view to
eliminating harmful and unnecessary fluctuations.
• To provide an efficient economic and regular supply of
petroleum to consuming nations and a fair return on
capital to those investing in the petroleum industry.

4. MEMBER COUNTRIES
Country Joined OPEC Location
Algeria 1969 Africa
Angola 2007 Africa
Ecuador ** rejoined 2007 South America
IR Iran * 1960 Middle East
Iraq * 1960 Middle East
Kuwait * 1960 Middle East
Libya 1962 Africa
Nigeria 1971 Africa
Qatar 1961 Middle East
Saudi Arabia * 1960 Middle East
United Arab Emirates 1967 Middle East
Venezuela* 1960 South America

5. STATUTE & MEMBERSHIP
• 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 three-
fourths of Full Members, including the concurring votes
of all Founder Members”

6. • It further distinguishes between three categories of
membership:
• Founder Members –
– those countries which were represented at OPEC's first
Conference, held in Baghdad, Iraq, in September 1960.
– And signed the original agreement establishing OPEC.
• Full Members are the Founder Members.
– plus those countries whose applications for Membership
have been accepted by the Conference.
• Associate Members are the countries which do not
qualify for full membership.
– but which are nevertheless admitted under such special
conditions as may be prescribed by the Conference.

7. HEADQUATER AND CONFERENCE
• The Heads of Delegation : The Heads of Delegation to
OPEC are the official representatives of each Member
Country to the OPEC Conference. They are normally the
Ministers of Oil, Mines and Energy of Member Countries.
• Headquarters : Vienna, Austria
• Official language : English
• President : Rostam Ghasemi
• Secretary general : Abdallah el-Badri
• Currency : USD per barrel

8. • OPEC Conference:
• Generally meets twice a year, in March and September,
and in extraordinary sessions whenever required.
• Operates on the principle of unanimity and one Member,
one vote.
• It is responsible for the formulation of the general policy
of the Organization, setting oil price and quotas for each
country and the determination of the appropriate ways
and means of its implementation.

9. OPEC Quotas and Production in thousands of barrels per day [36]
Country Quota (7/1/05) Production (1/07) Capacity
Saudi Arabia 10,099 9,800 12,500
Algeria
894 1,360 1,430
Angola 1,900 1,700 1,700
Ecuador 520 500 500
Iran 4,110 3,700 3,750
Iraq
1,481
Kuwait 2,247 2,500 2,600
Libya 1,500 1,650 1,700
Nigeria 2,306 2,250 2,250
Qatar
726 810 850
United Arab Emirates 2,444 2,500 2,600
Venezuela 3,225 2,340 2,450
Total 29,971 29,591 30,330
Quotas circa 2005

10. OPEC & WORLD
• Crude Reserve’s
Country Crude oil Reserves(billion barrels)2010
Venezuela 296.58
Saudi Arabia 264.54
Iran 151.70
Iraq 143.10
Kuwait 101.50
Total 1193.72
• 81.3 percent(1193.72) out of Total (1467.35)Crude
reserve’s, are in OPEC Member Countries.
Source: OPEC Annual Statistical Bulletin 2010/2011 Edition