DJ Indonesia May Decide To Change Crude Price Formula May Or Jun
JAKARTA (Dow Jones)--The Indonesian government will likely decide in May or
June whether to change the current formula for calculating the price of crude
oil that it sells to international buyers, an official said Monday.
One of the options being discussed is to use 50% of the average prices
assessed by Japan's Rim and 50% by Platts, said Eddy Purwanto, deputy finance
director of the upstream oil and gas regulating body BP Migas.
Currently the government's formula is based 47.5% on Rim's assessment, 47.5%
on Platts and 5% on the Asian Petroleum Price Index. The formula has been used
since Oct. 1, 2006.
The government has said the current formula results in an Indonesian crude
price that is $2-$4 a barrel below international oil prices.
Such a change would reflect government efforts to raise the price of
Indonesian crude oil to boost revenues for the state coffers.
It would also come at a time when domestic crude oil output is declining, as
faltering investment in the upstream sector has led to falling production,
which is pressuring state oil revenues.
Indonesia is the only East Asian member of the Organization of Petroleum
Exporting Countries.
-By Deden Sudrajat, contributing to Dow Jones Newswires; 62-21 39831277;
[EMAIL PROTECTED]
-Edited by Paul Baylis
(END) Dow Jones Newswires
April 15, 2007 23:07 ET (03:07 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.- - 11 07 PM EDT 04-15-07
---------------------------------
Ahhh...imagining that irresistible "new car" smell?
Check outnew cars at Yahoo! Autos.
