Press Release

OFID Director-General delivers address at high-level oil and gas conference

27/2007 September 10, 2007 Doha, Qatar
Press inquiries:

The Director-General of the OPEC Fund for International Development (OFID), Mr. Suleiman Al-Herbish, said on Saturday 8 September, that developing countries with ambitions to become oil and gas producers need to realise the complexity that stems from the diverse uncertainties inherent in the industry. The high exploration risk, the capital-intensive nature of the business, the long time-frame required for investment are all great challenges that “new comers” ought to bear in mind, he cautioned. While acknowledging the challenges facing potential oil and gas producers, the Director-General also expressed optimism that greater opportunities lay ahead.

Mr. Al-Herbish was speaking at the opening session of the “South-South High Level Meeting on Oil and Gas development” in Doha, hosted by the State of Qatar and jointly facilitated by the UN Economic Commission for Africa (UNECA), the UN Environment Programme (UNEP), the Canadian International Development Agency (CIDA), the UNDP Special unit for South-South cooperation and the UNDP Bureau for Development Policy. The Meeting was opened with a statement by H.E. Dr. Mohammed Al-Sadah, Minister of State for Energy and Industry of Qatar.

The Director-General noted another dimension that must be considered on the development of oil and gas industry, namely environment protection, which goes well beyond the rich-poor divide. Mr. Al-Herbish stressed that protecting the environment instigates North-South Cooperation particularly through areas like the Clean Development Mechanism under the Kyoto Protocol.

Mr. Al-Herbish highlighted the importance of developing proper institutions and capacity building, such as in investment in education and health, which are seen as vital to the success of the oil and gas development process.

Commenting on OFID’s energy commitment of 20% over the last 31 years, the Director-General indicated the institution’s plan to increase the share of energy-related projects to low-income countries, as energy plays a pivotal role for sustainable development and the achievement of the Millennium Development Goals.

The three-day Doha Meeting was organised in response to the demand from a number of new oil producing countries to share experiences. The forum has brought together over 100 high level government officials from more than 40 countries.

OFID’s participation is part of its mandate to facilitate South-South dialogue and extend assistance to developing countries.