Vienna: The Organization of Petroleum Exporting Countries (OPEC) marked its 65th anniversary on Sunday, emphasizing its commitment to stable markets and multilateral dialogue. Founded between September 10-14, 1960, in Baghdad, OPEC's establishment was announced by founding members Kuwait, Saudi Arabia, Iraq, Iran, and Venezuela.
According to Kuwait News Agency, OPEC was established during a period of significant change in the international economic and political landscape, characterized by extensive decolonization and the emergence of new independent states in the developing world. The international oil market at the time was dominated by the "Seven Sisters" multinational companies, which had spiked prices in 1959 and 1960, causing challenges for oil-exporting countries. This led to the creation of OPEC to stabilize prices and guarantee production, benefiting both producers and consumers.
The founding of OPEC aimed to enhance cooperation among its members and unify policies, allowing for the potential inclusion of more countries into the organization with the original five members' approval. The organization's formation was officially registered at the UN Secretariat in 1962, as per Article 102 of the UN Charter.
Initially, OPEC was headquartered in Geneva, Switzerland, before moving to Vienna, Austria, in 1965. Qatar joined the organization in 1961, followed by Libya and Indonesia in 1962. Today, OPEC comprises 12 member countries.
Over the decades, OPEC has maintained its core principles and values, ensuring the stability of oil and energy markets. The organization is governed by the Board of Governors and the Economic Council, which focus on economic studies and production oversight. Additionally, various committees manage tasks such as internal audits.
In 1976, OPEC established the OPEC Fund for International Development, based in Vienna, to enhance cooperation between OPEC members and developing countries through assistance and loans. Kuwait has played a significant role in OPEC, contributing to various agreements, including the OPEC+ agreement. In January 2022, OPEC members nominated Dr. Haitham Al-Ghais from Kuwait as Secretary General for a three-year term, with his mandate renewed in 2025, reflecting confidence in Kuwait's leadership within the organization.