Indonesia to cut oil output by 52,000 barrels per day

Indonesia will cut its oil output by 52,000 barrels per day (bpd) from the beginning of September as part of the OPEC?s (Organization of Petroleum Exporting Countries) 1 million bpd output cut, a senior official of the ministry of energy and mineral resources said.

Expert staff for economy and finance to the Minister of Energy and Mineral Resources Kardaya Warnika told Petromindo.Com on Tuesday the output cut will slash Indonesia?s output to 1.203 million bpd from 1.255 million at present.

Indonesia oil and condensate output will be at 1.370 million bpd as a result of the output cut, he said.

OPEC agreed last week to cut output by 1 million bpd to support the oil price, which has slipped to near the lowest level of the cartel?s price range of between US$22 and $28 per barrel.

Reports said that most of OPEC?s members, including Saudi Arabia, are committed to maintaining oil price at $25 per barrel.

Indonesia assumes the oil price at between $24 and $28 in its state budget. (Godang)