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Indonesia to Rejoin OPEC in December

After a seven year absence, Indonesia will reportedly rejoin the Organization of the Petroleum Exporting Countries (OPEC) in December.

According to reports, OPEC has notified Indonesia that it plans to accept the country's request to reactivate its membership in the cartel at OPEC's next meeting, which is scheduled for Dec. 4 in Vienna, Austria.

OPEC said Indonesia asked in September to rejoin the cartel. At the time, the cartel said it had circulated Indonesia's request to the other 12 nations in the bloc, and it added that "considering the feedback, the Indonesian [energy minister]...will now be invited to attend the next regular meeting...This will include the formalities of reactivating Indonesia's membership of the organization."

According to the U.S. Energy Information Administration (EIA), Indonesia produced 911,000 b/d of petroleum and other liquids and 2.5 Tcf of natural gas in 2014. The country is the world's 22nd-largest producer of oil.

Indonesia first joined the cartel in 1962 but suspended its membership effective Jan. 1, 2009 after increased domestic demand and lower production turned it into a net importer of oil. EIA said it became a net importer of oil in 2004.

Indonesia will become the second country to rejoin the cartel; Ecuador first joined OPEC in 1973, left the organization in 1992 and returned in 2007. Another country, Gabon, joined OPEC in 1975 but left in 1994.

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