Transforming OAPEC into the Arab Energy Organization: A Step Toward Enhanced Collective Action

The transformation of the Organization of Arab Petroleum Exporting Countries (OAPEC) into the Arab Energy Organization marks a strategic step toward reinforcing Arab cooperation in the energy sector.

The move supports collective efforts and contributes to sustainable development across the region. By broadening its scope to encompass all forms of energy—not just petroleum—the organization is adapting to modern demands and becoming more inclusive.

This shift provides an opportunity to enhance the efficiency of Arab collaboration in the energy field, keeping pace with the evolving global energy landscape, which now includes diversified energy sources and renewable energy. It also positions Arab nations to confront global challenges through unified policies and strategies, strengthening their presence in international markets while bolstering energy security within the region.

Foundation of OAPEC

OAPEC was established in 1968 with the aim of separating petroleum policy discussions from the political conflicts that often dominated the Arab League at the time. Membership was restricted to Arab petroleum-exporting countries, enabling the creation of shared Arab enterprises, such as the Arab Petroleum Investments Corporation (APICORP), headquartered in Dammam, Saudi Arabia.

Over the decades, OAPEC played a key role in shaping Arab petroleum policies and made impactful decisions, such as the 1973 oil embargo. However, calls have grown over the years to transform the organization into a more comprehensive entity that encompasses various energy sectors, boosting Arab cooperation in this critical area.

New Vision for Arab Energy Integration

In this context, Saudi Energy Minister Prince Abdulaziz bin Salman proposed transforming OAPEC into the Arab Energy Organization. The proposal, which has faced challenges due to complex Arab political dynamics, aims to expand cooperation to include renewable and nuclear energy alongside traditional energy sources.

The proposal outlines several strategic objectives, including fostering Arab integration in energy and economic sectors, unifying policies among member states to strengthen collective action, and contributing to sustainable development in the region.

Unlocking New Opportunities for Cooperation

If implemented, this transformation would signify a paradigm shift in Arab collective efforts. The organization would become a hub for coordinating policies and exchanging expertise among member states. It would also empower Arab nations to address global energy challenges while promoting sustainable economic development within the region.

While the success of this transformation depends on political consensus and collective determination to overcome obstacles, it presents a historic opportunity to strengthen Arab integration in one of the world’s most strategic sectors.

Coordinating Energy Initiatives

OAPEC recently announced its restructuring and renaming as the Arab Energy Organization (AEO). According to energy experts, the change allows for more comprehensive coordination of energy initiatives across the Arab world. Such efforts will support and enhance the export of oil and gas while aligning with the global trend of diversifying energy sources.

Dr. Mohammed Al-Sabban, an international economic and energy consultant, explained to Asharq Al-Awsat that the original name, OAPEC, was centered on petroleum exports. However, the current shift toward multiple energy sources and greater collaboration among Arab nations motivated Saudi Arabia to propose renaming the organization as the Arab Energy Organization.

Al-Sabban emphasized that the new name reflects a broader mandate, offering an opportunity for coordinated efforts in various energy sectors.

“Western nations claim they are moving away from oil and gas production, yet they continue to heavily support coal—a clear double standard,” he remarked.

He noted that Saudi Arabia is intensifying efforts to diversify energy sources, focusing on hydrogen development, renewable energy, and nuclear power. These steps align with the Kingdom’s larger vision of sustainability and global environmental commitments.

During its 113th ministerial meeting in December, OAPEC approved Saudi Arabia’s proposal to rename the organization as the Arab Energy Organization.

OAPEC, founded in 1968, includes 10 member states: Saudi Arabia, Kuwait, Libya, Algeria, Qatar, the UAE, Bahrain, Iraq, Egypt, and Syria. Of these, six are also members of OPEC.

Chevron has started oil and gas production from a project in the US Gulf of Mexico, the oil major said on Monday, bringing the company a step closer toward its goal of growing production from the ocean basin by 50% this year.

The $1.6 billion project called Ballymore, located about 160 miles southeast of New Orleans, is composed of three wells that are expected to produce up to 75,000 barrels of oil per day.

Chevron aims to grow oil and gas production from the Gulf to 300,000 barrels of oil equivalent per day in 2026, and at the same time, it is working to cut up to $3 billion in costs across the business.

Instead of building a new production platform for Ballymore, the wells will transport oil and gas back to an existing platform, which the company said will allow it to increase production at less expense.

“Ballymore is interesting in that it's a tie-back to an existing facility, which has allowed us to bring production to market more quickly,” said Bruce Niemeyer, president of Americas exploration and production, in an interview.

The project is also Chevron's first in a geological formation of the Gulf called Norphlet, where the oil and gas industry has historically had fewer discoveries than in other parts of the ocean basin, he added.

Advancements in technology are key to expanding resource exploration, such as the use of ocean bottom nodes, which allow geophysicists to collect better data underneath the ocean floor, Niemeyer said.

Chevron is the operator of Ballymore with a 60% interest, while co-owner TotalEnergies has 40%.

Ballymore holds an estimated 150 million barrels of oil equivalent in potentially recoverable resources.

The company owns 370 leases in the Gulf of Mexico and expects to participate in a lease sale this year by US President Donald Trump's administration, Niemeyer said.

The Ballymore start-up comes after Chevron announced first oil in August at Anchor, a Gulf of Mexico project that is a technological breakthrough with the ability to operate in deepwater pressures of up to 20,000 pounds per square inch.

Transforming OAPEC into the Arab Energy Organization: A Step Toward Enhanced Collective Action