Qatar set to withdraw from OPEC beginning January 2019, says Energy Minister

In a surprise move, Qatar has announced that it will withdraw from the Organisation of Petroleum Exporting Countries (OPEC) effective January 1, 2019.

Qatar’s Minister of State for Energy Affairs HE Saad Sherida Al Kaabi, who made this announcement during a Press conference in Doha, said OPEC had already been informed about the country’s decision, reported The Peninsula.

Qatar announces it was withdrawing from the Organization of Petroleum Exporting Countries “OPEC” effective 1 January 2019.

— Qatar Petroleum (@qatarpetroleum) December 3, 2018

The decision came after Qatar, one of OPEC’s smallest producers but the world’s largest liquefied natural gas exporter, reviewed ways to enhance its role internationally and plan long-term strategy, including focusing on its gas industry.

“Qatar has decided to withdraw its membership form OPEC effective January 2019 and this decision was communicated to OPEC this morning,” Al Kaabi was quoted as saying by Reuters.

H.E. Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, announced Qatar’s withdrawal from OPEC at a press conference in Doha and said the organization was informed.

— Qatar Petroleum (@qatarpetroleum) December 3, 2018

However, Qatar will still attend an OPEC meeting in Vienna this week.

The announcement comes ahead of the meeting by OPEC and its allies including Russia on December 6 and 7 to discuss cutting supply.

H.E. Al-Kaabi: the withdrawal decision reflects Qatar’s desire to focus its efforts on plans to develop and increase its natural gas production from 77 million tons per year to 110 million tons in the coming years.

— Qatar Petroleum (@qatarpetroleum) December 3, 2018

The minister said the decision was not easy as Qatar has been an OPEC member for 57 years. However, he added that the country’s impact on OPEC production decisions was small.

He stressed Doha would continue to abide by all its commitments like any other non-OPEC oil producer.

H.E, Mr. Al-Kaabi: “Qatar has worked diligently during the past few years to develop a future strategy based on growth and expansion, both in its activities at home and abroad”

— Qatar Petroleum (@qatarpetroleum) December 3, 2018

The withdrawal decision reflects Qatar’s intent to focus its efforts on developing its natural gas industry. Qatar is looking at shoring up its LNG production from 77 million tonnes a year to 110 million tonnes annually.

Al-Kaabi: “Achieving our ambitious growth strategy will undoubtedly require focused efforts, commitment and dedication to maintain and strengthen Qatar’s position as the leading natural gas producer.”

— Qatar Petroleum (@qatarpetroleum) December 3, 2018

The minister also said the decision was not linked to the illegal siege of Qatar, which has been in place since June 2017.

Mr. Saad Al-Kaabi: Qatar is proud in its international standing at the forefront of natural gas producers, and as the biggest exporter of LNG - the cleanest fossil fuel, which has given Qatar a strong and resilient economy.”

— Qatar Petroleum (@qatarpetroleum) December 3, 2018