Arun suffers Rp 4t in losses due to ExxonMobil closure<\/p>\n
JAKARTA (JP): Aceh-based liquefied natural gas (LNG) producer
\nPT Arun NGL said it suffered some Rp 4 trillion (US$350.8
\nmillion) in losses due to the four-month closure of ExxonMobil's
\ngas fields in the troubled province.<\/p>\n
The vice president of PT Arun, Hasan Saad, said on Friday the
\nlosses were due to the firm's failure to export some 40 LNG
\nshipments following the closure of ExxonMobil's gas fields.<\/p>\n
\"The longer ExxonMobil's gas fields do not operate, the
\ngreater the losses we will suffer,\" he was quoted by Bisnis
\nIndonesia as saying.<\/p>\n
He added that the company would not come close to meeting this
\nyear's target of delivering 116 LNG shipments, or about 23.5
\nmillion metric tons of LNG.<\/p>\n
The Arun plant stopped its LNG shipments after its natural gas
\nsupplier, ExxonMobil Oil Indonesia Inc., the Indonesian unit of
\nAmerican oil and gas giant ExxonMobil Corp., suspended operations
\nin Lhokseumawe, Aceh, in March due to security concerns in the
\nprovince.<\/p>\n
ExxonMobil supplies 90 percent of its natural gas production
\nto PT Arun, which exports a large part of its LNG to Japan and
\nSouth Korea.<\/p>\n
The other 10 percent is supplied to fertilizer firms PT Pupuk
\nIskandar Muda and PT ASEAN Aceh Fertilizer (AAF), as well as pulp
\nfirm PT Kertas Kraft Aceh.<\/p>\n
Hasan said the Arun plant was now only capable of keeping its
\nmachinery running to avoid any damage, using gas supplied from
\noffshore gas fields in North Sumatra.<\/p>\n
\"But this gas can't serve as a substitute for the gas from
\nExxonMobil (as the raw material for LNG production) because they
\nhave different qualities,\" he said.<\/p>\n
He expected ExxonMobil would begin operations at its gas
\nfields as soon as possible.<\/p>\n
ExxonMobil spokeswoman Deva Rachman was quoted as saying in a
\nreport late last week that the company still hoped to resume
\nproduction \"as soon as possible\", but could not give an exact
\ntimetable.<\/p>\n
Separately, AAF said it had suffered Rp 264 billion in losses
\ndue to the closure of ExxonMobil's gas fields.<\/p>\n
\"We really depend on the ExxonMobil gas fields,\" company
\nspokesman Badruddin said.<\/p>\n
AAF produced 587,055 tons of fertilizer last year, of which 99
\npercent, or 567,027 tons, was exported. (05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/arun-suffers-rp-4t-in-losses-due-to-exxonmobil-closure-1447893297",
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