ExxonMobile wants to sell shares in A Block: Minister<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
U.S. energy giant ExxonMobil plans to sell its shares in gas-rich
\nA Block in Lhokseumawe, Nanggroe Aceh Darussalam, according to
\nMinister of Energy and Mineral Resources Purnomo Yusgiantoro.<\/p>\n
The company, which holds 50 percent of participating interests
\nin the undeveloped block, has said it would farm out its shares
\nto interested parties, Purnomo said on Monday.<\/p>\n
ConocoPhillips, which holds the other half of the concession
\nrights and acts as the operator of the block, was currently
\nstudying the possibility o also selling its interests, he added.<\/p>\n
"We need their decision as the block has to start to be
\ndeveloped immediately," said Purnomo.<\/p>\n
ExxonMobil's spokeswoman Deva Rachman said that the company's
\nsubsidiary Mobil Block A Ltd. (MBAL) was not committed to divest.
\n"However, if another company sees more value than MBAL in Block
\nA, then MBAL will consider divestment," she said.<\/p>\n
ConocoPhillips has reportedly stalled the block's development
\nbecause it wanted a bigger share of the gas output. If the
\ncompany does not start construction by next year, the government
\nwill have the right to invite other investors.<\/p>\n
The government usually gets 65 percent of gas produced in a
\nfield. The split scheme in A Block differs as it has relatively
\nsmall gas reserves and the gas contains a high amount of sulfur,
\nwhich therefore, makes it more expensive to exploit.<\/p>\n
PT Medco Energy International, the country's largest locally
\ncontrolled oil and gas firm, said in a separate occasion that it
\nwould be interested in buying the rights to exploit the block.<\/p>\n
"We will participate in the open tender," said president
\ndirector Hilmi Panigoro. "We will possibly invite a partner to
\nshare the risk (in developing) the block," he added.<\/p>\n
Hilmi further said that the government's offer to take 52
\npercent of the output while the block owner got the other 48
\npercent was "very attractive".<\/p>\n
The development of the block is seen as critical to ensure the
\nsurvival of fertilizer firms in Aceh. Output from the giant gas
\nfield Arun -- which is operated by ExxonMobil -- in the province
\nis in decline, forcing fertilizer plants there to slow down or
\neven halt production.<\/p>\n
Aside from Medco, PT Energi Mega Persada, the country's second
\nlargest local oil company, has also reportedly interested in
\ndeveloping A Block.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/exxonmobile-wants-to-sell-shares-in-a-block-minister-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}