Sunday, March 13, 2011

Libya Conflict -Oil Conflict !!!!!

Conflicts in Libya and Yemen may affect world oil supplies to the international market, especially Indonesia as the conflicts in the two countries may spread to other Arab countries.

"Indonesia gets crude oil supplies from several Arab countries to the amount of 30 pct of the total imports of 350,000 bph," Director of the Public Policy Study Center (Puskepi), Sofyano Zakaria, said from Surabaya when asked to comment on the impact of the Libya-Yemen political conflict on Indonesia on Wednesday.
He said most of Indonesia’s crude oil imports fromthe Arab countries came from the Arab countries, including from Saudi Arabia 125.000 bph. If such condition happens, he suggested the Central government to hold negotiations and ask the Production Sharing contractors in Indonesia to sell their oil, in anticipation if the conflict in the Arab countries reduced the world crude oil supplies to Indonesia, he said.
If the government failed to take a firm stand, he predicted that the increase in the world crude oil price will last four to six months. "The condition will also affect the State Budget," he said. 



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