Pertamina asks ExxonMobil for 'limited operation'<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina has asked
\nU.S.-based ExxonMobil to resume the \"limited operation\" of its
\ngas fields in Arun, Aceh, citing improved security in the area.<\/p>\n
Pertamina president Baihaki Hakim said security had gradually
\nimproved following the deployment of thousands of soldiers to the
\narea.<\/p>\n
\"I met with (ExxonMobil) management this morning to ask them
\nto prepare for limited LNG operations,\" he was quoted as saying
\nby Antara news agency on Tuesday, adding that ExxonMobil was
\nevaluating the request.<\/p>\n
According to him, if ExxonMobil began the limited operation of
\nits gas fields, liquefied natural gas (LNG) producer PT Arun NGL
\nwould be able to resume LNG production at about 50 percent of its
\ncapacity.<\/p>\n
\"Normally, PT Arun produces 10 cargo loads of LNG per month
\nfrom four train loads. If two trains can quickly resume
\noperations, the company would be able to produce five cargo loads
\na month,\" Baihaki said.<\/p>\n
PT Arun was forced to halt operations following ExxonMobil's
\ndecision to stop production at four of its gas fields in Arun.
\nThe U.S.-based oil and gas company halted production because of
\nwhat it said were security concerns arising from the conflict
\nbetween separatist guerrillas and security personnel. ExxonMobil
\nis the sole supplier of gas to PT Arun's LNG plant.<\/p>\n
PT Arun's closure has caused jitters on the regional LNG
\nmarket, forcing LNG buyers in South Korea and Japan to scramble
\nfor alternative supplies.<\/p>\n
A number of top executives at ExxonMobil's headquarters in the
\nUnited States are in Indonesia to meet with government
\nrepresentatives. Their visit comes during increasing pressure
\nfrom the government for the company to resume operations.<\/p>\n
Meanwhile, Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro told Kompas daily on Saturday that during a recent
\nmeeting he held with ExxonMobil executives, he was told some mid-
\nlevel workers at the company refused to return to Aceh.<\/p>\n
Lower-level workers, most of them Aceh natives, are ready to
\nreturn to work if the government guarantees the safety of them
\nand their families, Purnomo said.<\/p>\n
The minister ruled out the possibility of the government
\ntaking over ExxonMobil's gas fields if the company refused to
\nresume operations.<\/p>\n
\"The government has assured ExxonMobil Indonesia, which has
\nstopped operations at its gas fields, that we are not going to
\nnationalize the fields.<\/p>\n
\"The policy the government has proposed is that we take over
\nthe operations. It is not a complete takeover or
\nnationalization,\" Purnomo said.<\/p>\n
In Tokyo, Japan's Tohoku Electric Power Co. said Tuesday it
\nhas purchased alternative liquefied natural gas cargoes totaling
\nabout 627,000 metric tons after it was left dry by the shutdown
\nof the Arun gas field in Indonesia.<\/p>\n
\"We bought two spot cargoes from Malaysia via trading houses
\nfor arrival until June,\" a spokesman told Dow Jones. The spot
\ntransaction was made in addition to the purchase of one Malaysian
\ncargo made shortly after the disruption.<\/p>\n
Tohoku also covered eight cargoes from Bontang in east
\nKalimantan, Indonesia, for delivery by the end of May.(jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-asks-exxonmobil-for-limited-operation-1447893297",
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