OAPEC’s activities in the various areas of the petroleum industry are guided by its Agreement, which makes continued close cooperation amongst member countries the principal objective of the Organization. This is realized through the following:     

I. Coordinating the Activities of Member Countries     

The Organization carries out this objective by promoting the exchange of information, and by holding seminars in which Arab and international experts participate.  These seminars serve as a forum for reviewing the latest technological developments, and possible solutions to technical problems encountered in member countries.  This field also encompasses, Arab Energy Conference (AEC) and other activities.     

II. OAPEC-Sponsored Ventures    

In pursuit of its objectives, OAPEC has sponsored the creation of four companies and a training institute to form a solid foundation for joint Arab action and Arab economic integration in the petroleum industry.  These ventures operated independently through their own boards of directors.  A brief summary of the four companies and the institute is given below:    

1.  Arab Maritime Petroleum Transport Company (AMPTC)

The agreement establishing AMPTC was signed on May 6, 1972.  The  Company was formally established in Kuwait in January 1973 with an authorized and subscribed capital of $500 million.  The activities of the company were defined as covering all operations related to the marine transportation of hydrocarbons. 

Shareholder countries in AMPTC are Algeria, Bahrain, Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, and the United Arab Emirates.  As a result of the decline in tanker demand, the Company was forced to reduce shareholders’ equity to absorb losses.  Authorized capital was reduced to $200 million and subscribed capital to $150 million.

2.  Arab Shipbuilding and Repair Yard Company (ASRY)   

The agreement establishing ASRY was signed in Kuwait on December 8,1973.  The company was officially set up in Bahrain with the following countries as shareholders: Bahrain, Iraq, Kuwait, Libya, Qatar, Saudi Arabic, and the United Arab Emirates.  ASRY’s incorporation was announced in December 1974 with an authorized capital of $100 million, which was increases to $300 million in 1976 and the $340 million 1977.

The objectives of ASRY cover the building, repair and maintenance of all types of ships including tankers and other marine transport vessels that are related to the shipping of hydrocarbons. In 1977, the Company established a dry dock in Bahrain primarily to service and repair oil tankers.  One of ASRY’s more significant accomplishments was the adding two large floating docks and their related facilities. The availability of the three docks has provided ASRY with the flexibility to service large and medium-sized tankers and ships.   

3.  Arab Petroleum Investments Corporation (APICORP)    

The agreement establishing APICORP  was signed on September 14,1974.  APICORP was officially formed in Dammam, Saudi Arabia in November 1975, with all OAPEC member countries as shareholders.  The authorized capital of the Corporation was $1.2 billion, with $400 million subscribed.  In May 2003 the General Assembly of the Corporation approved raising its subscribed capital to $550 million.  The capital increase was financed from APICORP’s general reserve. 

The primary purpose of APICORP is to assist in the financing of  projects related to the petroleum industry.  The rationale for its formation is the substantial financial requirements of petroleum projects.  The Corporation participated in twelve joint projects in Bahrain, Egypt, Iraq, Jordan, Libya, Saudi Arabia and Tunsia.

APICORP is a partner in two of the subsidiaries of the Arab Petroleum Services Company (also an OAPEC- sponsored venture) namely: The Arab Drilling and Workover Company (ADWOC), and the Arab Geophysical Exploration Services Company (AGESCO).  APICORP’s equity stakes in the two companies are 20% and 10% respectively. 

APICORP has 32% equity stake in the Arab Company for Detergent Chemicals (ARADET), which was established March 12, 1981, as a joint venture among several Arab interests with an authorized capital of ID 72 million, and headquarters in Baghdad, Iraq.  The Company has three production trains in its Linear Alkyl Benzene Complex.  The Company’s overall activity has been severely affected by the UN economic sanctions against which were imposed against Iraq, and the instability which Iraq witnessed in recent years.

4.  Arab Petroleum Services Company (APSCO)   

The agreement establishing this company was signed on November 23,1975.  APSCO was formally founded in Tripoli, Libya, in January 1977 with all OAPEC member countries as shareholders.  The company’s authorized capital was 100 million Libyan dinars.  The task of APSCO was to provide petroleum services by creating subsidiaries, which specialize in one or more branches of petroleum services. 

APSCO has thus far established three subsidiaries:

a. The  Arab Drilling and workover Company (ADWOC)    

ADWOC was established in Tripoli, Libya, in February 1980.  The Company is the main subsidiary of the Arab Petroleum Services Company, which owns 40% of its equity.  The other shareholders are APICORP (20%), and the Kuwaiti owned Santa Fe International Company (40%).  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.

The Company owns fourteen drilling rigs operating in Libya, Syria and Jordan.  It has also established workshops, storage facilities, and a division for the maintenance and testing of equipment, supply of rigs, and the production of oxygen and nitrogen.

b. The  Arab Well Logging Company (AWLCO)  

AWLCO is a wholly owned subsidiary of the Arab Petroleum Services Company that was established in Baghdad, Iraq, in March 1983.  The company specializes in performing well logging and perforation operations, and other well-related technical operations necessary for the discovery and development of oil fields.

c. The Arab Geophysical Exploration Services Company (AGESCO)    

AGESCO was established in Tripoli, Libya, in 1984.  The Arab Petroleum Services Company has a 40% stake in the company.  Other shareholders include APICORP (10%), the Libyan National Oil Corporation (10%), and Halliburton Geophysical Services Company (40%).  AGESCO performs geophysical surveys using the latest technology.

5.   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 personnel 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 and education, as well as the creation of a central information and documentation system.

However, due to the repercussions of the 1990-1991 Gulf Crisis APTI faced difficulties in performing its mission.  In December 1994, the Ministerial Council of the Organization decided to entrust Iraq with the administration and sponsoring of the Institute for a renewable period of two years commencing January 1995.

Introspective

At the end of 1987, the Council of Ministers of the Organization probed the ways and means through which the General Secretariat can strike a balance efficiency and at the need to rationalize expenditure, as well as maximum benefits from OAPEC-Sponsored-ventures. Since the main objective of the Arab Petroleum Investment Corporation (APICORP) was the participate in the financing of petroleum industries and projects that are related to all its different facts, the Council of Ministers decided  that all projects, which were evaluated or followed-up by the General Secretariat, would henceforth be transferred to APICORP for evaluation and follow-up. The effectiveness of this decision was further assured, by APICORP’s now well- established technical, executive and managerial structures, and its complement of professional staff who are experienced in performing economic and technical studies. 

The Council also stipulated that for any future projects to be studied, at least member should express their desire that it be carried out, with each country absorbing 10% of the cost.