Purnomo upbeat on oil revenue

Minister of energy and mineral resources Purnomo Yusgiantoro said on Friday he was optimistic that Indonesia's budget oil price target of $24 a barrel could be achieved.

``Indonesia's average oil price is US$26.5 per barrel from January to now. I am optimistic that the average $24 per barrel in the 2001 budget will be achieved,'' he told reporters after being sworn in as part of President Megawati Sukarnoputri's first cabinet.

``I think oil price will strengthen when OPEC begins to cut output one million barrels per day from September 1.''

The Organisation of the Petroleum Exporting Countries is due to cut output next month in the latest of a series of reductions to bolster flagging prices and on signs of slowing demand because of the global economic slowdown.

Purnomo, who held the same post in the cabinet of Abdurrahman Wahid ousted three weeks ago, said the new government would offer incentives to boost oil production.

``We are thinking of giving incentives to oil contractors, but on a case-by-case basis,'' he said.

Indonesia produced 1.23 million bpd of crude oil and 130,000 bpd of condensate in July.(*)