OPEC chief Sudjana to visit Arab state
OPEC chief Sudjana to visit Arab state
JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana will start an OPEC mission on Sunday with visits planned to Saudi Arabia, Qatar and the United Arab Emirates to get input on Gabon's request to quit the petroleum organization.
"In my first tour as the new president of the Organization of Petroleum Exporting Countries, I will discuss the development of the world's oil market and the membership of the organization," Sudjana told reporters after meeting with Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya on Wednesday.
He said he expected that the three Arabian countries will disclose their views on Gabon, as well as the developments in the oil market. The three countries have a combined ceiling of 10.539 million barrels per day in OPEC.
Sudjana said discussion of Gabon's proposal will be finalized at the organization's meeting in Geneva by the middle of this year.
He said that Gabon, which has a production ceiling of 287,000 barrels per day in OPEC, has sent the 12-member organization a letter describing its current economic situation and its intention to withdraw from OPEC membership as a result of its financial constraints.
"Its fund limitation for the required contribution to the organization seems to be the main reason for Gabon wanting to leave OPEC," he said.
Gabon, with a population of 1.2 million, became an associate member of OPEC in 1973 and a full member in 1975. It has proven oil reserves of 1.8 billion barrels.
"We will try to find the best way to settle the Gabon matter in order to maintain the good performance of the organization," Sudjana said.
Reuters reported yesterday that Gabon's Minister of Mines, Energy and Water Resources, Paul Toungui, denied suggestions that his country has withdrawn from OPEC, saying that any withdrawal would depend on the response from other member states to its request for a cut in its contribution to the organization.
Last November, OPEC rolled over its production ceiling of 24.52 million barrels per day for the whole of 1995 with an option to review the rollover by the middle of this year. (fhp)