Qatar will withdraw from the Organization for Oil Producing Countries (OPEC), Gulf Energy Energy Minister Saad Sherida Al-Kaabi announced on…
Qatar will withdraw from the Organization for Oil Producing Countries (OPEC), Gulf Energy Energy Minister Saad Sherida Al-Kaabi announced on Monday.
The decision to end the block of 15 oil producing countries accounting for about 40 percent of world oil production was confirmed by Qatar Petroleum, the state’s oil company.
Speak at a press conference in Doha, Al-Kaabi said: “T revokes the call for recall Qatar to focus its efforts on plans to develop and increase its natural gas production from 77 million tonnes per year to 110 million tonnes in the next few years. “
Qatar is the first golfing country to leave the oil producers’ block.
Al Jazeera correspondent Charlotte Bellis said that Qatar made the decision just a few days before an OPEC meeting on December 6th.
“They say that nothing has to do with the blockade in Qatar, and they have been thinking about it for several months now,” said Bellis, Egypt and Bahrain . Bahrain . United Arab Emirates UAE ), Egypt and Bahrain .
“They also said that if you want to withdraw from OPEC it had to be done before the end of the year,” she added.
“They said they would do it now and be open to a 6th OPEC meeting.”
Qatar joined OPEC 1961, one year after the organization’s establishment.
Earlier this week, OPEC and Russia, which together produce about 40 percent of the world’s oil, announce that they agreed on new oil production cuts to prevent oil prices from falling too much in the coming months.
In October, oil prices reached a four-year high of 86 dollars, but since then the price has fallen back to about $ 60 a barrel.
Qatar is the world’s largest supplier of Liquid Natural Gas (LNG), which produces almost 30 percent of the world’s total.
According to Al Jazeera Bellis, Al-Kaabi said that the explanation was purely business decisions.
“Al-Kaabi said we are a small player in OPEC, and I’m a businessman, it’s not meaningful for me to focus on things that are not our strength and gas is our strength, that is why we have taken this decision, “Bellis says.
Al-Kaabi decided to increase the supply of natural gas to “develop a future strategy based on growth and expansion, both in its home and abroad operations.”
“Achieving our ambitious growth strategy will undoubtedly require focused effort, dedication and dedication to maintaining and strengthening Qat’s position as the leading natural gas producer, “he added.
Qatar shares the world’s largest known natural gas field Northfield with Iran.
In September, Qatar announced that it would increase its natural gas production by adding a fourth production line to increase capacity from the North Field to 110 million tonnes per year.
Most of Qatar’s nearly 80 million tonnes of annual LNG shipments are shipped in tankers to different countries.