OPEC on hunt for new members, secretary-general says

VIENNA — The head of OPEC said on Wednesday that the producer alliance is actively looking for new nations to join the cartel, which accounts for 40% of the world’s oil output.

The coalition held the OPEC International Seminar at its headquarters in Vienna this week, with the participation of energy ministers and energy CEOs from around the world. OPEC currently has 13 members: Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, Iran, Algeria, Angola, Libya, Nigeria, Congo, Equatorial Guinea, Gabon and Venezuela. Most of the energy ministers of these countries were present at this week’s two-day conference that kicked off on Wednesday. 

Ten more non-OPEC countries form OPEC+ with the 13 OPEC members: Russia, Azerbaijan, Kazakhstan, Bahrain, Brunei, Malaysia, Mexico, Oman, South Sudan and Sudan. The energy ministers of Azerbaijan and South Sudan spoke at the seminar this week.

Asked whether he was trying to expand OPEC, Secretary-General Haitham Al Ghais told reporters on Wednesday, “I am, yes.”

Although Ghais did not disclose who the new members would be, he said, “I was in Malaysia, I was in Brunei. I was in Azerbaijan, I was in Mexico,” stressing he had not necessarily invited these countries to join the group.

There has been speculation about Guyana, a South American country that is one of the fastest-rising oil producers in the world, potentially joining OPEC. However, at the end of June, both the Guyanese government and the group denied the rumors. 

Prominent members of OPEC+, Saudi Arabia and Russia earlier this week announced additional voluntary cuts and in recent meetings, the organization has decided to reduce output to increase the price of oil. So far, the market has not priced in Riyadh’s one-month extension of a cut of 1 million barrels per day (bpd) and Moscow's announcement that it would reduce oil exports by 500,000 bpd, with Brent crude hovering at about $75.

The UAE's energy minister Suhail Al Mazrouei told reporters Wednesday that his country won't be making any voluntary cuts at this time and is already "doing enough."

Iranian-Saudi meeting

Meanwhile, Iran's Oil Minister Javad Owji and Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman met on the sidelines of the OPEC seminar on Wednesday, the Iranian Oil Ministry's SHANA news agency reported Thursday.

"Owji and bin Salman discussed bilateral issues between Iran and Saudi Arabia, including investment in the oil and gas industry and exploring the possibility of joint investment," SHANA said.

Iran’s oil minister said that Iran has signed energy contracts worth $40 billion with domestic and foreign companies. He noted that Iran’s Oil Ministry plans to attract $250 billion in investment over the next eight years.

“We are faced with brutal sanctions imposed by one country and these sanctions against Iran’s economy and oil industry have not been imposed by the United Nations,” Owji said, according to SHANA. 

“We have, however, managed to increase oil and gas output by using experience we have gained in developing oil and gas fields and constructing refineries and petrochemical complexes during long years of sanctions.”

Owji said that Iran is currently producing around 3.8 million bpd of crude oil and gas, and more than 1 billion cubic metres of rich gas.

OPEC has blocked several media outlets including Al-Monitor, Bloomberg, Reuters and The Wall Street Journal from attending the seminar this week.

A spokesperson for the oil group told Al-Monitor it was “an administrative decision” but gave no other reason for the move.

It is the second time in a month the cartel has stopped some reporters from covering their events.