Gov?t sees lower crude revenue in 2003

Minister of energy and mineral resources Purnomo Yusgiantoro said that crude price assumption on next year?s state budget would be lowered from US$ 22 per barrel this year to $ 20.5 in anticipation of lower crude price next year.

?It is anticipated that revenue from oil and gas will be lower in 2003 because we would not be able to dramatically raise production to offset the price decrease,? said Purnomo in an interview Tuesday. Indonesia produced 1.1 million BDP of oil in July.

Purnomo said a combination of low world?s economic growth; abundance of stock in consumer countries and non-compliance of OPEC and Non-OPEC oil producers would be the main factor to drive the price down.

Reports said that two OPEC members Nigeria and Algeria are pumping well above their production quota and are reportedly seeking for quota raise. Arab Saudi is also seen to produce above its quota. Meanwhile, Non-OPEC producers such as Russia are seen to be keen of boosting their export.(alex)