OPEC told to unite in setting prices<\/p>\n
By Frits H. Pangemanan<\/p>\n
KUTA, Bali (JP): President Soeharto yesterday urged ministers
\nof the Organization of Petroleum Exporting Countries (OPEC)
\nmeeting here to close ranks and take measures to prop up oil
\nprices on the world market.<\/p>\n
\"I appeal to OPEC to close ranks and act wisely so that the
\nworld will get the right assessment of the oil that we produce
\nwith difficulty,\" he said at the opening of OPEC's 97th
\nministerial meeting at the Pertamina Cottages here.<\/p>\n
The agenda of the three-day ministerial meeting includes the
\ndetermination of OPEC's production ceiling, election of a new
\nsecretary general, appointment of the head of its board of
\ngovernors and calculation of its annual budget.<\/p>\n
President Soeharto urged the 12-member organization to
\nmaintain unity and mutual trust and to avoid things harmful to
\nthe interests of members.<\/p>\n
\"Only with strong solidarity and unity can OPEC show to the
\nworld that it is a respectable organization with a good mission,\"
\nsaid Soeharto.<\/p>\n
Stressing the importance of proper pricing, the President
\npointed out that only reasonable prices would permit
\nreinvestments to discover new oil reserves.<\/p>\n
He cautioned that Indonesia, OPEC's only Asian member and the
\nregion's second largest producer, would sooner or later become a
\nnet oil-importing country if not enough new reserves were
\ndiscovered.<\/p>\n
\"Should this happen Indonesia will no longer have the right to
\nbe a member of this organization,\" he said, adding that
\nIndonesia, together with other OPEC members, could actually play
\nan active role in striking a better balance between the world's
\ndemand for oil and its supply.<\/p>\n
After the opening ceremony, the President, who was accompanied
\nby Minister of Mining and Energy I.B. Sudjana, met with all the
\nOPEC ministers and delegates for 20 minutes.<\/p>\n
The 34-year-old organization comprises Algeria, Gabon,
\nIndonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi
\nArabia, the United Arab Emirates and Venezuela.<\/p>\n
Dependence<\/p>\n
Soeharto said that most Asia-Pacific countries have now become
\nmajor oil importers and their dependence on imports
\nwill become even greater if producers in this region cannot
\nincrease their output.<\/p>\n
The former secretary general of OPEC Subroto quoted OPEC
\nprojections, stating that in the next century, around 50 percent
\nof the world's oil demand will come from developing countries,
\nespecially from Asia and the Pacific, compared to 30 percent at
\npresent.<\/p>\n
Soeharto added that Indonesia has anticipated the possibility
\nof the oil depletion by diversifying the sources of its energy
\naway from oil.<\/p>\n
\"The contribution of the oil and gas sector to our gross
\ndomestic product rose from 18 percent in the 1970s to around 24
\npercent in 1981 but went down to 10.8 percent in 1993,\" he said.<\/p>\n
He cautioned, however, that as Indonesia's economy continued
\nto grow so would its demand for oil and that if no new reserves
\nwere found, Indonesia would turn from an exporter into a net
\nimporter.<\/p>\n
Nigeria's representative to OPEC Mohammed Barkindo told
\nreporters after the opening session that the best way to beef up
\nthe oil prices is by maintaining the present ceiling of 24.52
\nmillion barrels per day (bpd), which has remained unchanged since
\nSeptember last year.<\/p>\n
OPEC President Abdallah Salem El-Badri of Libya concurred that
\nmost members were in favor of extending the present ceiling for
\nat least six months from early next year.<\/p>\n
\"Other ministers are talking about the six and twelve-month
\nrollover, but ... according to our discussion yesterday (Sunday),
\nthere were some agreements that six months will be reasonable
\ntime,\" he told the press after the ceremony.<\/p>\n
Sudjana, who was elected the new chairman of OPEC yesterday
\nafternoon, agreed that the rollover is the best way for
\nstabilizing the oil market.<\/p>\n
\"We have reached a consensus to rollover the ceiling either
\nfor six months or 12 months,\" Sudjana told The Jakarta Post and
\nthe Reuter news agency yesterday.<\/p>\n
OPEC's Governor for Venezuela Gonzalo Plaza told the Post that
\nmembers who exceeded their output quotas should abide by the
\nceiling to help raise the oil prices.<\/p>\n
The meeting is expected to elect a new secretary general of
\nOPEC today to replace Subroto from Indonesia which had held that
\npost for about six years.<\/p>",
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