RI won't propose an increase in OPEC quota

RI won't propose an increase in OPEC quota

Indonesia will not propose an increase in OPEC's
production quota when the organization meets next week in Vienna,
Minister of Energy and Mineral Resources Purnomo Yusgiantoro said
Friday.

"We are not going to suggest any quota increase because our
production is maximum," the minister was quoted by the state
Antara news agency as saying.

He was speaking after meeting President Megawati Soekarnoputri
in advance of the March 11-12 meeting of the Organization of
Petroleum Exporting Countries.

Last week OPEC Secretary General Alvaro Silva Calderon said
the group was ready to offset price increases with more
production in the event of a U.S.-led war with Iraq.

He said it could raise its current production quota of 24.5
million barrels a day by over 15 percent in the event of war.

On Thursday, Purnomo said OPEC's price band target was no
longer viable because the OPEC basket price was still above the
top of the band.

"The $22-$28 per barrel price band isn't workable anymore as
the oil price isn't likely to drop below $28 per barrel," Purnomo
told reporters.

OPEC's basket of seven crude oils averaged $32.12 a barrel
Tuesday, compared with $31.63 per barrel Monday.

However, Purnomo stopped short of saying whether Indonesia
will officially ask OPEC to drop the price band mechanism during
the organization's meeting in Vienna. -- Agencies