Arun LNG plant

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