Opec member Indonesia is considering leaving the oil cartel to concentrate on domestic production, the country's president has said.
Levels of oil production from its ageing wells are declining, making the country a net importer of oil.
It is concerned about rising oil prices, which hit $120 a barrel for the first time on Monday.
Some analysts have said Opec's reluctance to cut production has kept oil prices high.
Declining investment in Indonesia's oil infrastructure has seen its output drop below a million barrels a E Timor militia leader released ...
Opec dashes oil supply rise hopes ...
Oil prices hit record in New York ... day from about 1.5m in the mid-1990s.
It is also said to be concerned about the cost of remaining a member of the group.
President Susilo Bambang Yudhoyono said the government had begun talks on Monday as to "whether we should continue to stay with Opec or withdraw our membership... until we reach a point where we deserve to rejoin that organisation."
Oil analyst Kurtubi said that - as an oil importer - Indonesia's concerns clashed with those of other Opec members.
"[Indonesia's] interests now are different. We want oil prices to come down as high oil prices put pressure on our budget. But exporters want a reasonable or even high price since it is their main source of revenue."
(BBC)
<< Back