The Organization of Petroleum Exporting Countries has approved
Indonesia’s request to rejoin, IGN Wiratmaja Puja, director-general of
oil and gas at the country’s Energy and Mineral Resources Ministry, said
in a text message on Tuesday.
The country suspended its membership in January 2009 after becoming a net oil importer.
As Bloomberg reports, Indonesia’s readmission is on track for approval by OPEC ministers when they meet in Vienna on December 4.
The role of the Asian nation as an energy consumer and producer will help OPEC “bridge” the gap between the two groups, and its location in Asia will strengthen the
organization’s ties with the region where demand growth is strongest,
Energy Minister Sudirman Said said in June.
The decision may also be targeted at concluding deals on imports from OPEC members, according to consultants Petromatrix GmbH.
Olivier Jakob, managing director at Petromatrix, thinks that the objectives seem blurry. He explained that in 2008 they left because they were not satisfied with high prices for oil, and they want to come back because they want to get access to supplies and investments.
Indonesia received confirmation of members’ support on Aug. 31, a person with knowledge of the matter said. OPEC member states also received written notice that the nation’s readmission is approved, Bloomberg reports.
The country would
discuss potential crude supply and investments with OPEC member Iran, Energy Minister Said announced at an OPEC event in June.
The cartel agreed to suspend Indonesia’s membership in September 2008 at the country’s own request, almost fifty years after the nation joined. Indonesia pumped 852,000 barrels a day of oil in 2014 and consumed almost twice as much, according to BP Plc.
The Asian nation’s re-entry would come at a time when OPEC has dropped its traditional role in supporting prices as it seeks to defend market-share against supplies from U.S. shale drillers and other rivals.
