Arun LNG plant

With regards your report titled Two Arun LNG trains to be shut, on Feb. 19, 2000, we hereby would like to comment and make a correction as follows:

1. I was telephoned by your reporter at 7 p.m. on Feb. 18, asking me to confirm information from media sources in Singapore reporting that two trains of the Arun LNG plant soon would be closed.

2. I said I was not competent to comment on the closure of the two LNG trains and asked him to contact Pertamina's public relations central office.

3. The reporter questioned the capability of the gas fields of Mobil Oil Indonesia (MOI) to supply the Arun LNG plant. I said the gas supply of Mobil Oil Indonesia remained normal despite security troubles in its operation in Lhoksukon. I added that if there was a plan to close some trains in Arun, it was not because of security concerns but was related to sales contracts with buyers.

4. Thus, we hereby state that we did not confirm the closure of two trains in the Arun LNG plant. The Jakarta Post's report on Feb. 19, 2000 made us appear to have confirmed the closure.

A. SIDICK NITIKUSUMA

Head of Public Relations and Security

Pertamina, Foreign Contractors Management Body

Note: During the phone conversation, our reporter also referred to a statement in Petroleum Report Indonesia 1999 issued by the American Embassy stating "Production capacity at Arun is 12.3 million metric tons, but output will decline beginning in 2000 according to LNG sales commitment schedules". Mr. Nitikusuma did not deny the truth of this statement.

-- Editor