‘Landmark’ Declaration of Cooperation Turns 9

A statement posted on OPEC’s website last week highlighted that the “landmark” Declaration of Cooperation (DoC) between OPEC member countries and 10 non-OPEC oil-producing countries has turned nine years old.

“It was nine years ago … that OPEC member countries and Azerbaijan; the Kingdom of Bahrain; Brunei Darussalam; Equatorial Guinea, which later joined OPEC; Kazakhstan; Malaysia; Mexico; the Sultanate of Oman; the Russian Federation; the Republic of Sudan; and the Republic of South Sudan met in Vienna, Austria, to discuss recent global oil market developments and look at possible means to restore a sustainable oil market stability,” the statement noted, adding that the meeting “led to the birth of the DoC”.

“This followed extensive rounds of consultations in the previous months of 2016, which included developments such as the ‘Algiers Accord’ on 28 September at the 170th (Extraordinary) Meeting of the OPEC Conference in Algiers and the ‘Vienna Agreement’ on 30 November at the 171st Meeting of the OPEC Conference in Vienna,” the statement pointed out.

The statement posted on OPEC’s site said the DoC “saw the producers present uphold their responsibility for oil market stability in the interest of all oil producing and consuming countries”.

“It demonstrated a commitment to the global community to help restore and sustain oil market stability with positive and broad implications for the world economy. This commitment has continued in the nine years since,” it noted.

In the statement, OPEC Secretary General Haitham Al Ghais said, “history was made nine years ago and a new journey began, one that has highlighted the necessity, value and importance of multilateral dialogue and engagement at ministerial, technical and research levels”.

“Looking back, it is clear that the DoC has become the framework to help support oil market stability, energy security, and global economic growth,” he added.

“Its success over the years is down to the trust and transparency that has developed among all participants. Its strength is based on the sum of all its parts. Every country has an important role to play,” he continued.

“I have no doubt it will continue to evolve and flourish in the years and decades to come. We look forward to celebrating the 10th Anniversary in 2026,” he went on to state.

A statement posted on OPEC’s website on December 10, 2016, noted that, “following the ‘Vienna Agreement’ decided upon at the 171st Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) on 30th November 2016, ministers from OPEC met with a number of ministers from non-OPEC oil producing countries on Saturday 10th December, at the OPEC Secretariat in Vienna”.

That statement highlighted that the meeting “took into account current oil market conditions and short- to medium term prospects and recognized the need for joint cooperation of the oil exporting countries, to achieve a lasting stability in the oil market in the interest of oil producers and consumers”.

In a section of OPEC’s website dedicated to the DoC, the organization states that the DoC constitutes an unprecedented milestone in the history of the organization.

“In late 2016, after months of talks, the Algiers Accord was signed by a group of OPEC and non-OPEC producers. The resulting DoC was agreed on 10 December of the same year,” OPEC notes in that section of its site.

“For the first time ever, OPEC member countries coordinated with a number of non-OPEC oil producing countries in a concerted effort to accelerate the stabilization of the global oil market,” it adds.

OPEC goes on to state on its site that the DoC started as a group of OPEC and non-OPEC producers responding to a severe market downturn that began in 2014.

“People, businesses, and economies were being hit hard. Quick action was needed to help restore stability,” it says.

“The landmark framework changed the course of history, helping return balance and stability to the market. The tenants upon which the DoC was built back in 2016 continue to guide it today,” it notes.

“Back in 2016, the group heralded in a new era of cooperation and today it has become an essential feature in the ‘new world of energy’. The path over the past eight years and more has been challenging and winding, but the DoC’s success is a remarkable testament to the power of cooperation,” OPEC goes on to note on its site.

A statement posted on OPEC’s site on November 30 focusing on the 40th OPEC and non-OPEC ministerial meeting highlighted that, “in light of the continued commitment of the OPEC and non-OPEC participating countries in the DoC to achieve and sustain a stable oil market, the participating countries decided to … reaffirm the Framework of the … [DoC], signed on 10 December 2016 and further endorsed in subsequent meetings”.

A separate statement posted on OPEC’s site on the same day pointed out that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman “reiterated their collective commitment to achieve full conformity with the … [DoC]”.

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