Subroto bows out of OPEC with a big smile

Subroto bows out of OPEC with a big smile

VIENNA (Reuter): OPEC lost one of its most persistent voices of moderation on Thursday as Indonesia's Subroto made his final appearance as Secretary-General at a conference of the sometimes fractious 12 oil exporters.

The former oil minister, now 65, ends six years in the job as the Organisation of Petroleum Exporting Countries' effective international ambassador, charged with running the group's Vienna headquarters.

His departure, after completing the maximum two consecutive terms in office, has plunged OPEC back into the chaos of political rivalry over the post that his appointment back in 1988 had resolved.

Before he took the reins, the post had been occupied since 1983 by an acting secretary-general because of a dispute over candidates involving Iran and Iraq.

Now OPEC is hamstrung again, as 11 ministers were unable to convince Iran to withdraw its candidate and allow Venezuela's former Oil Minister Alirio Parra to gain the necessary unanimous endorsement.

The conference ended with the stop-gap decision to give Libya's Oil Minister Abdullah Salem al-Badri the joint role of OPEC conference president and acting secretary-general, putting off a decision on a full-time replacement until the ministers next meet in November.

Subroto, an aristocratic Javanese was the first OPEC secretary-general to have held political ministerial rank, and the status gave him the respect necessary to play a leading role in organization's negotiations.

As Indonesia's Mines and Energy Minister from 1978 to 1988 he saw the heady days of the second oil price shock, when the price briefly touched $40 a barrel in the aftermath of the Iranian Revolution. At the time he was in the moderate camp, favoring more reasonable prices.

He was also there during OPEC's dark days when other oil producers emerged and oil consumers switched to alternative fuels, culminating in the 1986 price collapse below $10.

Morale in OPEC was extremely low through most of the 1980s. Iran and Iraq were at war for eight years, and the other Gulf Arabs at that time supported Iraq.

During those years OPEC's share of the world market was whittled down just over one-third by large quantities of oil from the North Sea oil and other non-OPEC sources.

Central role

Subroto played a central role at OPEC's all-too-numerous conferences to agree lower and lower output ceilings in desperate efforts to bolster the market.

In OPEC circles he became known as one of "The Three Wise Men" -- three ministers (the other two were generally Nigerian and Venezuelan) who tried to broker agreements cutting up quota shares fiercely guarded by governments trying to protect their revenues.

It was a role that he helped his successor as Indonesian Oil Minister, Ginandjar Kartsasasmita, continue within an organisation which remained fraught with frictions between its numerous Arab members - which exploded yet again in 1990 with Iraq's invasion of Kuwait.

Throughout the tribulations the still sprightly veteran made every effort to remain optimistic, and, acting as OPEC's chief mouthpiece, built a strong rapport with OPEC's often critical media following through patience and good humor.

Those qualities showed in his last appearance at a conference as secretary-general on Thursday.

Asked how he would like his stewardship of OPEC to be remembered Subroto replied: "with a bow tie and a smile."