RI agrees to lower oil production

Indonesia, a member of the Organization of Petroleum-Exporting Countries (OPEC), on Thursday expressed the need to lower oil production in order to avoid oversupply after the anticipated rehabilitation of Iraq oil fields.

Mines and Energy Minister Purnomo Yusgiantoro said a proposal to slash international oil production by 1.5 million barrels per day was expected to be raised at the upcoming OPEC meeting in Vienna on April 24.

"Until now, we have not officially discussed the lowering of oil production, because we should first hear the report of OPEC's secretariat general," Purnomo told reporters after attending a cabinet meeting, as quoted by Antara.

The news agency reported that the minister disclosed that Indonesia has already given its nod to the lowering of oil production to prevent oversupply.

Purnomo said following the end of the conflict in Iraq, the country's oil fields will be rehabilitated within six months. "OPEC should brace itself in anticipation of the rehabilitation of Iraq's oil fields," he said.

OPEC recently decided to increase its production by 1.5 million barrels per day due to a possible production slump in Iraq, caused by the war.(*)