Arun NGL plant to be reopened his week: Govt
Arun NGL plant to be reopened his week: Govt
JAKARTA (Agencies): Mines and Energy Minister said on Tuesday he expected Exxon Mobil's gas fields in its rebellious Aceh province to resume normal operations this week.
Production at the PT Arun NGL plant was hit after its top supplier Exxon Mobil closed three fields on Friday due to security concerns, casting a cloud over one of Indonesia's biggest export earners.
"Security has been reinforced there," minister Purnomo Yusgiantoro told reporters. "We expect the gas fields and LNG operations can return to normal this week."
"I have told our LNG (liquefied natural gas) buyers that we will do our best to fulfil our commitments. We still have excess capacity from our Bontang LNG centre. Therefore, we have not declared a force majeure."
However, ExxonMobil Oil Indonesia Inc., a unit of Exxon Mobil Corp., said it shut down its operations completely in restive Aceh province on Tuesday on deteriorating security.
"It's not a safe environment for us to work," ExxonMobil Oil's spokesperson Julia Tumengkol told Dow Jones Newswires.
She said the company suspended natural gas pumping in its three onshore blocks Arun, Lhoksukon and Pase. The three blocks produce a total of 1.6 billion cubic feet of natural gas daily.
ExxonMobil Oil late last week had started to reduce operation due to deteriorating security in the province.
ExxonMobil Oil is the sole natural gas supplier to PT Arun Gas, which liquefies the natural gas before it's ship to South Korean and Japanese buyers.
Purnomo said exports from Arun were worth about 12 trillion rupiah (US$1.2 billion) a year out of a total 30 trillion from LNG.
The PT Arun NGL plant was barely producing LNG on Monday after Exxon Mobil's field closures.
The government said Monday it will meet gas deliveries to South Korean and Japanese buyers with LNG from Bontang or will ask Malaysian and Australian producers to plug in the shortage.
ExxonMobil Oil's facilities and staff have been repeatedly attacked and its operations are frequently hampered due to clashes between insurgents and Indonesian security forces.
Tuesday, Defense Minister Mohammad Mahfud said a "limited military operation" would soon be launched against guerrillas fighting for independence in the province.
In a related development, an executive of state-run Korea Gas Corp. (Kogas) said earlier in Seoul that a vessel loaded with 56,000 metric tons of liquefied natural gas for delivery to South Korea left Monday from Indonesia's Arun gas field and is expected to dock in Pyongtaek March 19.
The official said the vessel Hoegh Gandria began loading LNG Sunday evening after a day-long delay.
A second vessel is expected to begin loading another 56,000 tons of LNG on Wednesday, with delivery to South Korea slated for March 22, the Kogas official said. This will be the last loading for the month for Kogas from Arun.
"We haven't heard anything from Indonesia's state oil and gas company Pertamina indicating that there will be a delay in the second lifting," the Kogas official said.