GABON PROTESTS OPEC FEE; WITHDRAWAL REPORTED

Jan. 16, 1995
Gabon has protested its cost of membership in the Organization of Petroleum Exporting Countries. However, a report in the general press that Gabon has withdrawn from OPEC apparently is not correct. Cost of membership in the organization of 12 countries, formerly 13, is the same for small producers as for large. Rather than a flat fee, Gabon wants membership fees pegged to oil production or sales revenues.

Gabon has protested its cost of membership in the Organization of Petroleum Exporting Countries.

However, a report in the general press that Gabon has withdrawn from OPEC apparently is not correct.

Cost of membership in the organization of 12 countries, formerly 13, is the same for small producers as for large. Rather than a flat fee, Gabon wants membership fees pegged to oil production or sales revenues.

GABON'S LETTER

Middle East Economic Survey cited "reliable sources" as saying a letter sent Dec. 20, 1994, by Gabon to OPEC Pres. Ida Bagus Sudjana, Indonesia's energy minister, said Gabon would withdraw from OPEC at yearend.

OPEC confirmed that Sudjana received a letter from Gabon but denied that the letter contained Gabon's notice of withdrawal.

All OPEC members are required to pay a fee of 19.6 million Austrian schillings ($1.8 million)/year, regardless of oil income.

Gabon's letter said the fee was too high, considering the country is OPEC's smallest producer with a quota of 287,000 b/d and production of 340,000 b/d. Saudi Arabia, with an oil flow of 8 million b/d, is easily the No. 1 producer in OPEC.

MEES reported that Gabon's letter said OPEC should take account of the "true limits of each single member country" if it wishes to avoid becoming simply a "large producers club."

Sudjana is believed to be consulting with fellow OPEC oil ministers before deciding how to deal with Gabon's protest. Options include calling an emergency meeting of ministers or waiting until the next scheduled ministerial conference in June.

As it waits for OPEC's reaction, Gabon may choose to raise the issue Jan. 20 at OPEC's board of governors meeting in Vienna.

Gabon's representative apparently has confirmed since the letter was sent that he will attend the governor's meeting. This is seen as evidence of Gabon's continued membership of OPEC.

However, discussion at the governor's meeting would be only a starting point because policy matters are decided at the ministerial level.

EFFECT OF WITHDRAWAL

Julian Lee, oil analyst at London's Centre for Global Energy Studies, said that while withdrawal of Gabon from OPEC would be unlikely to affect markets significantly, it could harm OPEC's morale.

If Gabon did pull out of OPEC, Lee would expect Gabon's government to follow Ecuador's example by trying to attract foreign investment in a bid to hike oil productive capacity.

Gabon could be the second member to withdraw from OPEC. Ecuador, the first, withdrew in 1992.

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