Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

OPEC plans to add net-importer Indonesia back into the cartel

Indonesia will rejoin OPEC after leaving the organization in 2009, according to I Gusti Nyoman Wiratmadja Pudja, director-general of oil and gas at the country’s energy ministry. All of OPEC’s current members approved of the country’s application last week, allowing Indonesia to reactivate its membership in November, reports the Associated Press.

Indonesia decided to discontinue its membership to OPEC on January 1, 2009, reports The Wall Street Journal. The country has been a net importer of oil since the early 2000s, but it hopes that by rejoining OPEC, that it will be able secure more investment into its oil and gas industry, as well as ensure a secure supply of oil imports.

The country’s 2015 production target of 825 MBOPD makes it Southeast Asia’s largest producer, but the fourth smallest OPEC member by production. The country has roughly 250 million people with a rapidly growing demand for energy, requiring it to import much of its energy needs.

The statement made by Indonesia’s energy ministry following the news that its application had been approved cited strong support from Saudi Arabia, Indonesia’s largest supplier. “The Saudi Arabian government delegation appreciate and fully support the decision of the Indonesian government to become an OPEC member again,” Inodnesian Energy Minister Sudirman Said said.

Saudi Oil Minister Ali al-Naimi plans to push for state-owned Saudi Aramco to invest in Indonesia’s downstream sector, reports Reuters. The UAE also plans to supply crude and fuel oil to the recently re-inducted OPEC member, while Iraq said it was open to Indonesia expanding its investment in Iraq’s upstream sector.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.