OPEC urges members to lobby against U.S. NOPEC bill and outline risks
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 [April 23, 2021] LONDON
(Reuters) - OPEC is encouraging its members to engage with the U.S.
administration over a proposed U.S. bill against the group, known as
NOPEC, and to explain that passing the bill could put at risk U.S.
interests abroad.
A U.S. House panel passed a bill this week to open the Organization of
the Petroleum Exporting Countries to lawsuits for collusion in boosting
oil prices but it is uncertain whether the full chamber will consider
the legislation.
"It is essential that member countries reinforce diplomatic bilateral
contacts with government officials in the U.S. ... and explain the
disadvantages for the U.S. should the NOPEC bill become law," according
to a letter written by OPEC Secretary General Mohammad Barkindo to
member states and seen by Reuters.
"These disadvantages might include: weakening the immunity principle at
a global level, putting at risk U.S. interests overseas, and the
protection for their personnel and assets," the letter said.
Similar bills to target OPEC when oil prices rise have appeared in
Congress over the past two decades without success.
Barkindo said "several prominent U.S. economic actors" had expressed
reservations about the NOPEC bill, including the U.S. Chamber of
Commerce.
His letter to OPEC members included a letter from Neil Bradley, the
chamber's chief policy officer, addressed to U.S. House of
Representatives Judiciary Committee Chairman Jerrold Nadler and Jim
Jordan, a committee ranking member.
"Under reciprocal legal regimes the United States and its agents
throughout the world could be tried before foreign courts – perhaps
including the military – for any activity that the foreign state wishes
to make an offense," Bradley wrote in the letter dated April 13.
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The OPEC logo pictured ahead of an informal meeting between members
of the Organization of the Petroleum Exporting Countries (OPEC) in
Algiers, Algeria, September 28, 2016. REUTERS/Ramzi Boudina
RISK TO MARKET
Barkindo said other disadvantages of the bill might include undermining
important trade and energy relations between the United States and
member states and might affect oil prices.
It could "increase the risk of volatility of the international oil
markets, which directly affects U.S. oil-producing states and
corporations," he said.
The NOPEC bill, introduced by Republican Representative Steve Chabot,
was passed by voice vote in the House Judiciary Committee.
Letters from OPEC's secretariat to members are fairly common and relate
to events that may impact energy consumers and producers.
Barkindo's letter said the bill could lead to fines on OPEC members and
its national oil companies, which could be collected through seizure of
assets on U.S. territory or elsewhere.
It said the Vienna-based secretariat would resume monthly reports on the
bill's progress, call a legal team meeting to brainstorm possible
actions and gain a better understanding of the new U.S. administration's
position on the bill.
(Reporting by OPEC Team; writing by Dmitry Zhdannikov and Alex Lawler;
Editing by Marguerita Choy and Edmund Blair)
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