Indonesia Wants to Rejoin OPEC

Indonesia Wants to Rejoin OPEC

Energy and Mineral Resources Minister Ignasius Jonan has sent a request
letter to rejoin the Organization of the Petroleum Exporting Countries
(OPEC). The letter was sent on May 24.

The government has given one condition that OPEC will not agree on oil
production cut. At the end of last year, member states agreed to cut
production by 1.2 million barrels per day to recover oil price. During the
meeting that was held in Austria, Indonesia decided to withdraw from OPEC.

Sujatmiko said that OPEC will give access to Indonesia to purchase oil
directly from producers. The scheme would be more profitable compared to
buying oil from traders with more expensive prices. At present, 50 percent
of 1.6 million barrels domestic oil consumption is imported.

The decision to join OPEC was first suggested by former energy minister
Sudirman Said. Indonesian membership was approved in 168th meeting held in
Austria in November 2015. But Indonesia left the organization one year later
after being asked to lower production by 37,000 barrels per day.

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Link to Original Article:
https://en.tempo.co/read/news/2017/06/06/056881825/Indonesia-Wants-to-Rejoin
-OPEC

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com