ExxonMobil keeps operating despite Thursday's incident<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
Oil and gas producer ExxonMobil Indonesia Inc. will not shut down
\nits gas fields in troubled Aceh province despite an ambush by
\nunidentified armed men on Thursday that killed one employee of
\nthe company's contractor, a company spokeswoman said on Friday.<\/p>\n
\"We will continue to operate based on our standard security
\nprocedures ... We have taken necessary measures to safeguard the
\nlife of our employees,\" said Julia Tumengkol.<\/p>\n
A convoy carrying employees of ExxonMobil and its contractors
\nin the South Lhoksukon area, part of ExxonMobil's Arun gas fields
\nin North Aceh regency, was attacked by gunmen at 8.30 a.m.,
\nkilling one person.<\/p>\n
There were no other casualties in the incident, Julia said.<\/p>\n
She said that the company had demanded the police investigate
\nthe case thoroughly.<\/p>\n
Security has been a major concern for ExxonMobil's oil and gas
\noperation in Aceh as local rebel fighters continue their long
\nstruggle to separate the oil-rich province from Indonesia.<\/p>\n
ExxonMobil was forced to shut down its Arun gas fields in mid-
\nMarch on security fears arising from the activities of local
\nrebels, causing the nearby Arun LNG plant also to halt its LNG
\n(liquefied natural gas) production.<\/p>\n
This caused disruption of the country's LNG supply to major
\nexport markets in Japan, South Korea and Taiwan, prompting the
\nforeign buyers to seek new suppliers in other countries.<\/p>\n
The supply was partly secured again in August after ExxonMobil
\nhad resumed operation of the Arun gas fields in mid-July and fed
\nits gas to the Arun LNG plant.<\/p>\n
The gas fields in the South Lhoksukon area had just resumed
\noperation recently.<\/p>\n
Julia said that at present, ExxonMobil was preparing to
\nstabilize gas production at the South Lhoksukon facility and also
\nto resume the Pase gas operation.<\/p>\n
She also said that the Arun gas fields operation had yet to
\nmeet its normal production level of around 1.6 billion cubic feet
\n(bcf) per day.<\/p>\n
So far, ExxonMobil is producing about 1.2 bcf to 1.3 bcf per
\nday from some parts of the Arun gas fields and the North Sumatra
\nOffshore block.<\/p>\n
But the Thursday killing incident might raise worries once
\nagain, especially for the Korean and Japanese LNG buyers, over
\nthe security of LNG supplies from the Arun facility.<\/p>\n
Japan is Indonesia's largest LNG importer, followed by Taiwan
\nand South Korea. These countries signed long-term LNG contracts
\nwith Indonesia.<\/p>\n
ExxonMobil delivers 90 percent of its natural gas production
\nto PT Arun NGL, the operator of the Arun LNG plant, while the
\nremaining 10 percent is supplied to fertilizer firms PT Pupuk
\nIskandar Muda and PT ASEAN Aceh Fertilizer, as well as pulp firm
\nPT Kertas Kraft Aceh.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/exxonmobil-keeps-operating-despite-thursdays-incident-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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