Indonesia expects to encourage a spirit of investment cooperation in Asia and the Middle East during a trade visit to Iran, said the country's energy minister.
Indonesia Energy Minister Sudirman Said, who is on a visit to Iran, said trade should focus not only on the energy sector but also on broader economic ties, UPI reported.
Prior to his arrival in Tehran, the minister said he would use the opportunity to discuss "any investment information" given to Middle East leaders, including the governing members of the Organization of Petroleum Exporting Countries.
In September, Indonesia submitted a request to reactivate its membership in OPEC, which it left in 2009 because it was no longer a net exporter. In a September statement, OPEC said its members would 'welcome its [Indonesia's] return'.
For Iran, the government expects sanctions relief could eventually make it the second-largest producer in OPEC, after Saudi Arabia. Iranian Oil Minister Bijan Namdar Zanganeh said net oil production could increase by more than 1.5 million barrels per day, bringing total production for the Islamic Republic to just over four million bpd by the end of next year.
Zanganeh said there are many countries and investors looking to cooperate with Iran once sanctions pressures ease. "Indonesia shall not be the last among the countries queuing up to enter Iran," he said.
OPEC in its latest monthly market report said member states were producing more oil even though an over-supplied market is keeping crude oil prices lower. A potential increase from Iran, and eventually Indonesia, could add further negative pressure to crude oil prices.
Zanganeh said Iran's economy has been able to navigate through sanctions and low oil prices therefore are not a major concern. The oil ministry's website, Shana, was critical of OPEC members for not honoring a production ceiling. Without one, Shana noted, crude oil prices will continue to decline.