OPEC's oil surge mainly technical: Sudjana

OPEC's oil surge mainly technical: Sudjana

JAKARTA (JP): Minister of Mines and Energy Ida Bagus Sudjana said yesterday that the Organization of Petroleum Exporting Countries (OPEC) is producing about 500,000 barrels of oil per day above its agreed output ceiling.

"The higher output is mainly technical because of a slight excess in pumping crude by many of its members," Sudjana told reporters after meeting with President Soeharto.

The organization agreed in January to extend its output ceiling of 24.5 million barrels per day (bpd) until the end of this year, but it turned out that the current level of production, by its 12 members, reaches 25 million bpd.

Sudjana, who is also OPEC's president, said he had reported to Soeharto about his plan to attend an OPEC ministerial meeting in Vienna on Monday to discuss the organization's financing problem, the group's quota, oil output by independent producers, Iraqi production and the development of Iran-U.S. relations.

Iraq is an OPEC member but has halted its oil exports due to a United Nations embargo.

Sudjana said the OPEC meeting will also discuss Gabon's plan to withdraw its membership due to difficulties in paying a membership contribution of US$1.5 million a year.

Gabon, a small producer, with an output quota of 287,000 bpd, pays the same amount as Saudi Arabia, a major OPEC producer with a quota of eight million bpd.

The minister said that he obtained a pledge from the West African country to temporarily suspend its decision to quit during his recent visit to Gabon, but he added that the country's oil minister was expected to announce Gabon's final decision at next week's meeting.

Sudjana said he will also visit Alaska and attend a bilateral energy meeting in South Korea.(31)