Since its inception, OAPEC has sponsored the creation of four companies, which operate in the vital petroleum industry sector. This was attained while member countries allocated a percentage of their financial returns for founding and launching projects. The principal objective of founding of the four companies is to build cooperation bridges amongst member countries to achieve mutual benefit for the shareholders upon incorporation, and economic fundamentals were considered in the entire process.
OAPEC continues to spot opportunities for cooperation, and preparation of feasibility studies for proposed projects to be submitted to the Ministerial Council for decision. Thereafter, OAPEC contributes to gathering the parties concerned with the projects to convene their constituent assembly meetings.
These ventures operated in accordance with the practices adopted in the shareholding companies through two main organs: General Assembly, Board of Directors, where the General Manager is in charge of all executive affairs.
A brief summary of the four companies as follow:
Arab Maritime Petroleum Transport Company (AMPTC)
The Arab Maritime Petroleum Transport Company (AMPTC) was established in Kuwait on January 1973, with an authorized and paid-up capital of $500 million. As a result of a decline in oil tanker demand, the company reduced shareholders equity in the 1980's. Authorized and paid-up capital was reduced to $200 million and subscribed capital to $150 million.
The activities of the company were defined as covering all operations related the marine transportation of hydrocarbons by filling the vacuum in the transfer, and to overcome foreign monopoly predominant.
The company commenced the operation in the mid- seventies in unfavorable market conditions due to imbalanced supply/demand equation in the maritime transport markets, making it a difficult commencement for the company. The company needs financial support by shareholder companies to ensure its business continuity.
Arab Shipbuilding and Repair Yard Company (ASRY)
The Arab Shipbuilding and Repair Yard Company (ASRY), was established in December 1973, the company was set-up in Bahrain with an authorized capital $34 million, and a paid-up capital amounted to $170 million.
The company's objective is to cover all operations of building, repairing and maintaining all types of ships, tankers, other maritime vessels for transporting hydrocarbons, and offshore exploration platforms, this includes repairing industrial equipments and heavy electrical equipment and manufacturing steel structures and pressure tanks for offshore and onshore purposes.
The dry dock project was first conceived in 1968, with the aim of building and operating as well equipped and efficient repair, with sufficient capacity to accommodate the VLCC/ULCC's serving the Arabian Gulf oil terminals. The dry dock was completed and began operating in 1977, even though the worldwide ship repair was undergoing a period of intense competition and over-capacity. ASRY has succeeded in manufacturing, marketing, and processing, that the dry dock keeps fully occupied and semi continuous.
The Arab Petroleum Investments Corporation (APICORP)
APICORP was officially formed in Dammam, Saudi Arabia in November 1975, with an authorized capital of the Corporation was $1.200 billion, with $400 million subscribed. In May 2003, the paid up capital was raised to $550 million, with all OAPEC member countries as shareholders.
The purpose of APICORP is to assist in the financing of projects related to the petroleum industry, and in fields of activity which are derived there from ancillary to associated with or complementary to such projects and industries as well as giving priority to Arab Joint Ventures.
APICORP conducts its operations on a commercial and economic basis with the intention of generating profit.
Arab Petroleum Services Company (APSCO)
APSCO was formally founded in Tripoli, Libya, in January 1977, with an authorized capital of 100 million Libyan dinars. The task of APSCO was to provide petroleum services by carting subsidiaries, which specialize in one or more branches of petroleum services. APSCO has thus far established three subsidiaries as follows:-
The Arab Drilling and workover company (ADWOC)
ADWOC was established in Tripoli, Libya, in February 1980 with an authorized and fully paid capital LD 12 million. The company is the main subsidiary of the Arab Petroleum Services Company which owns 40% of its equity. The mission of ADWOC involves onshore and offshore drilling operations, well maintenance, drilling water wells, and performing other technical operations associated with drilling in member countries, as well as other countries in competition terms and profitability endeavors. Moreover, ADWOC provides training programs for Arab experts and technicians to improving and developing the quality management system in line with oil industry.
ADOWC owns seventeen drilling rigs operating in Libya, Syria, and Jordan. It has also established workshops, storage facilities, and division for the maintenance and testing of equipment, supply of rigs, and the production of oxygen and nitrogen.
Arab Well Logging Company (AWLCO)
AWLCO is a wholly owned subsidiary of the Arab Petroleum Services Company that was embellished in Baghdad, Iraq in March 1983, with an authorized capital of Iraqi Dinars 7 million (about $23.4 Million). AWLCO specializes in performing well drilling and perforation operations, and other well-related technical operations necessary for the discovery and development of oil fields in Arab oil producing countries. Certainly AWLCO and its sister companies located in the republic of Iraq, has been severely affected by the current situation and the UN economic siege imposed upon Iraq, as well as looting that followed Iraq liberation in April 2003.
The Arab Geophysical Exploration Services (AGESCO)
The company was established in 1984, in Tripoli, Libya. The Arab Petroleum Services company has 40% stake in the company of its authorized capital of LD12 million, and a paid-up capital of LD 4 million. AGESCO performs geophysical surveys using the latest technology. Arab Technical staff represent 90% of total manpower, the company successfully attracted nemours specialized Arab elements in geophysical surveys.
Arab Petroleum Training Institute (APTI)
APTI was established in Baghdad, Iraq, in May 1978, to prepare instructors qualified to provide training in the many technical aspects of the oil industry, and to augment the administrative and technical personal responsible for the different fields of the industry. The other objectives of APTI include performing research and conducting studies related to the modern techniques of industrial organization, and the methodology and techniques of training education, as well as the creation of a central information and documentation system.