OPEC happy with RI's membership: Govt<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
The Organization of Petroleum Exporting Countries (OPEC) has no
\nproblem with Indonesia's membership, even if the country becomes
\na net crude oil importer, a top official says.<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nsaid according to OPEC, what was important was that Indonesia,
\nthe organization's second-smallest producer, was a net exporter
\nwhen it became a member.<\/p>\n
\"Once you're inside, you continue to be a member. OPEC has no
\nproblem (with Indonesia's membership),\" he said on the sidelines
\nof a seminar on oil and gas here on Wednesday.<\/p>\n
The government has said that it was considering pulling out of
\nthe organization due to the country's falling crude oil output,
\nwhich may lead to Indonesia becoming a net crude oil importer in
\nthe future.<\/p>\n
A team tasked with reviewing the country's membership has
\nrecommended that Indonesia reduce its status from member to
\n\"observer\" to avoid paying US$1 million a year in fees.<\/p>\n
The change would allow the country to be within the OPEC
\ncircle without spending much-needed budget money.<\/p>\n
Aging oil fields and lack of new exploration have meant the
\ncountry's crude oil output has steadily declined by 5 percent a
\nyear. At present, Indonesia produces less than one million
\nbarrels a day, far below the 1.425 million barrels quota set by
\nOPEC.<\/p>\n
This low output made Indonesia a net crude oil importer for
\nabout four months last year.<\/p>\n
\"We are still a (crude oil) net exporter now, although the
\ndifference is very small,\" Purnomo said.<\/p>\n
Due to increasing fuel demand and the limited capacity of
\nlocal refineries Indonesia has also had to import 400,000 barrels
\nof refined fuels a day, making the country a net exporter of fuel
\nproducts, both unprocessed and refined.<\/p>\n
Regarding total OPEC production, Purnomo said OPEC had not
\ndecided yet if it would add 500,000 barrels of oil a day to its
\nquota in the market to ease oil prices.<\/p>\n
\"Oil prices are lower now as the stockpile in the United
\nStates is strong,\" the minister said.<\/p>\n
The United States consumes some 20 million barrels of oil a
\nday, of which half is imported.<\/p>\n
OPEC raised its quota by 500,000 barrels a day to 27.5 million
\nbarrels a day last month.<\/p>\n
\"We (OPEC) will decide in our meeting in June about the
\nadditional quota,\" Purnomo said.<\/p>\n
According to Bloomberg, crude oil futures in New York have
\nfallen 15 percent since reaching a record $58.28 a barrel on
\nApril 4 as U.S. inventories rose and OPEC increased output.<\/p>",
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"sponsor": "Okusi Associates",
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