Jakarta says more Opec output rises might be tough

JAKARTA (September 21) : Indonesia said on Wednesday that if oil prices did not fall after an Opec output hike in October, it might be difficult for many members to raise production further as they would likely be close to full capacity.

"If, with the production increase in October, the price still stays high, it may be difficult for the majority of Opec member countries to increase production," Rachmat Sudibyo, director general of oil and gas, said on the sidelines of a conference.

"Maybe only Saudi Arabia can do it." He reiterated that Indonesia would be unable to meet immediately the increased quota of 1.356 million barrels per day it has been allocated as part of Opec's September 10 decision to raise production by 800,000 bpd from October.

"I think the majority of the Opec member countries have the same problem, the only one which has extensive spare capacity is Saudi Arabia," Sudibyo said. He said Indonesian production was now about 1.32 million bpd. Over the short term, Indonesia was looking to increase capacity by providing incentives to encourage development of marginal fields, Sudibyo said.

He said Jakarta was considering several incentives, but that a change in government stakes of production sharing contracts was not being considered.

"We're not considering reducing the split, that is the last parameter," he said.-Reuters

http://www.brecorder.com/story/S00DD/SDI21/SDI21210.htm

-- Martin Thompson (mthom1927@aol.com), September 20, 2000

Answers

Indonesia's production is much less than they are letting on. And, they are the major oil supplier to Japen. Amazing! We haven't heard a thing about an oil shortage in Japan, when all logic tells us there should be.

Sure do wonder what's going on.

-- JackW (jpayne@webtv.net), September 20, 2000.