Indonesian oil company may face quota increase due to Mideast conflict

The conflict between Israel and Palestine may lead to an additional oil quota being set by the Organization of Petroleum Exporting Countries [OPEC], a quota that Indonesia will face difficulties in meeting.

"Our production capacity is now at the maximum state. If OPEC sets an increase in oil production quota, Indonesia will be in trouble," director general of oil and gas at the Ministry of Energy and Mineral Resources Rachmat Sudibjo said Monday.

Indonesia has so far obtained an additional quota of 41,000 barrels of oil per day [bpd] from 1,317 million bpd to 1,350 million bpd, while the national capacity has reached the maximum point, he said.

Meanwhile, he added, the world's oil prices today (US$30-$33 per barrel) were the highest in the last ten years, forcing OPEC to raise oil production by up to 500,000 barrels per day in a bid to make the prices lower.

"If the Israel-Palestine crisis continues, which creates a possible boycott from oil producing countries in Middle East, OPEC is expected to raise total oil production by around 800,000 barrels per day to maintain world's oil supply," he said.

He added the possible rise in oil production would be discussed in the OPEC extraordinary meeting scheduled for November 12 in Vienna, Austria. (*)