Thursday, May 29, 2008

Indonesia to Withdraw from OPEC Due to High Oil Prices

From Bloomberg via Money Morning:

Indonesia, the sole Asian member of the Organization of the Petroleum Exporting Countries (OPEC), will withdraw from the oil cartel at the end of this year.

Energy Minister Purnomo Yusgiantoro announced today (Wednesday) that he would sign a decree officially withdrawing Indonesia from OPEC when its membership expires at the end of 2008.

A member since 1962, Indonesia’s exports have been waning for years due to aging oil wells and a lack of infrastructure investment by the government. Oil production is down 49% from its 1977 peak. The country has now become a net importer of oil, Purnomo said.

"If production comes back to give us the status of net oil exporter then we can go back to OPEC," Purnomo said, speaking before the Jakarta Foreign Correspondents Club today, Bloomberg News reported....MORE