OPEC to welcome back Indonesia as member after seven-year absence

Nurluqman Suratman

05-Jun-2015

OPEC to welcome back Indonesia as member after seven-year absenceSINGAPORE (ICIS)–Energy cartel OPEC is welcoming back Indonesia as a member, seven years since the country voluntarily suspended its membership as it turned into a net crude importer amid declining domestic production.

“All the members of OPEC, including Saudi Arabia, stated their support to Indonesia to re-join OPEC, remembering that Indonesia is one of the country participating in founding and developing OPEC,” Indonesia’s Ministry of Energy and Mineral Resources said in a statement issued on Friday.

The current 12-member OPEC currently accounts for about 40% of the world’s oil supply. The group comprises Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the UAE and Venezuela.

In September 2008, the group had agreed to suspend Indonesia’s membership at the southeast Asian country’s own request.

Indonesian energy minister Sudirman Said formally announced the country’s intention to re-join OPEC on Thursday (4 June) at the 6th OPEC International Seminar with the theme “Petroleum: An Engine for Global Development” in Vienna, Austria. OPEC discussed the request on 5 June, during its semi-annual meeting.

“The Saudi Arabian government delegation appreciate and fully support the decision of the Indonesian government to become an OPEC member again, because Indonesia is one of the founders of OPEC,” Saudi Arabia’s petroleum minister Ali Al-Naimi was quoted in the statement issued by the Indonesian energy ministry.

Saudi Arabia will also encourage state oil major Saudi Aramco to invest in a refinery in Indonesia, it said.

“Saudi Arabia is the biggest supplier of crude oil for Indonesia. Last year, Saudi Arabia supplied up to forty million barrels, so due to their support and cooperation Saudi Arabia has a strategic role for Indonesia,” Al-Naimi said.

Meanwhile, Said noted that Indonesia is seeking to increase crude imports from OPEC member Iran through a long-term supply deal, once trade restrictions on the Middle Eastern country have been lifted.

The UAE, on the other hand, has offered to operate oil blocks in Indonesia through its state-owned firms and to invest in “refinery development”, Said stated.

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

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