KUWAIT: The Organization of Arab Petroleum Exporting Countries (OAPEC) is undergoing a major restructuring, including a revision of its founding mandate and a new name. The 113th Ministerial Meeting held in Kuwait on Sunday officially approved the overhaul and announced that OAPEC would now be known as the Arab Energy Organization (AEO).

Since its establishment in 1968, OAPEC has acted as an intergovernmental organization promoting cooperation among Arab countries involved in petroleum production and export. Its main goal has been to coordinate and unify oil policies among member states. However, the global energy landscape has undergone significant transformations in recent years, prompting the need for OAPEC to adapt.

The restructuring, proposed by Saudi Arabia, follows a comprehensive evaluation of the challenges and opportunities facing the energy sector at both regional and global levels. OAPEC Secretary-General Jamal Al-Loughani emphasized that these developments require a broader focus for the organization, encompassing all energy-related fields to enhance cooperation and facilitate expertise sharing among its members.

Many energy organizations worldwide have been adjusting their mandates to incorporate sustainability goals, renewable energy transitions, and climate concerns. This is seen in shifts toward more sustainable energy practices and a recognition of the need to adapt to environmental challenges. As part of its restructuring, OAPEC aims to reinforce its role in the evolving energy landscape, strengthening national energy capacities and improving coordination among member states.

Al-Loughani confirmed that the first phase of the restructuring project, which includes amendments to the organization’s founding agreement, has been approved. The substantive changes will be implemented once the amendments are ratified through the legal processes in each member state.

During the meeting, the ministers also approved the 2025 budget for the Secretariat-General and discussed ongoing initiatives, including the Green Middle East Initiative and the adoption of the circular carbon economy concept. The meeting recognized the winners of OAPEC’s Scientific Research Award and announced that the award’s value would increase starting in 2024.

Further discussions focused on updates on petroleum market conditions, developments in liquefied natural gas (LNG) and hydrogen, and ongoing economic and technical studies. The Secretariat-General also provided reports on energy-related issues, including climate change challenges, and the progress of its Information Bank and other activities.

Earlier on Sunday, His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah met with oil and energy ministers from OAPEC member states. The meeting underscored Kuwait’s leadership role within the organization and discussed ways to strengthen cooperation and achieve shared energy goals.