RI Supports oil output increase to curb oil price rise

Minister of Energy and Mineral resources Purnomo Yusgiantoro said on Wednesday Indonesia would support plan to raise the oil output of the Organization of Petroleum Exporting Countries (OPEC) by 500.000 and 1 million barrels per day provided that the rise would not depress oil price to below US$22 per barrel.

Purnomo said Indonesia was committed to maintaining the oil price at the range of US$22 and US$28 per barrel.

The minister said he was not sure if Indonesia was able to raise its oil output if OPEC decided to increase its output.

"As such, the government will ask (state oil gas and company) Pertamina if it is able to raise production said on the margin of the ceremony to award coal contracts to the subsidiaries of Australian firm BHP and to renew the contracts of Tin mining company PT Koba Tin and granite mining company PT Granite Karimun.

Director general of oil and gas Rachmat Sudibyo said OPEC had agreed to raise output by 500.000 barrels per day if oil price stayed above US$28 in 20 consecutive days.

If OPEC raised output by 500.000 bpd, Indonesia will be allowed to raise its output by 30.000 bpd, Rachmat said. (godang)