Arun to resume gas production later this month
Arun to resume gas production later this month
JAKARTA (JP): More than three months since pulling out from
the Arun gas fields in Lhok Sukon, Aceh, PT ExxonMobil Oil
Indonesia has returned as part of a joint team with state oil and
gas company Pertamina.
The team will lay the groundwork for the resumption of
operations, which is expected some time late this month.
ExxonMobil spokeswoman Julia Tumengkol said on Monday her
company and Pertamina had deployed a technical team to access the
physical condition of the Arun gas facilities.
"We have started the deployment of technical experts to access
conditions and the operability of the Arun facilities and
equipment," Julia said in a statement.
She said the team, comprising ExxonMobil and Pertamina
employees, and local contractors, was sent to Arun during the
weekend.
"Assuming that security conditions permit, we are planning to
restart production in phases," she said without elaborating.
The fixed schedule will be worked out based on input from the
technical team, she explained.
ExxonMobil remains tightlipped over when the company hopes to
restart production, saying nothing would be clear until the
security situation had improved.
"All efforts are being made to bring the Arun field back into
gas production as soon as possible," Julia added.
Pertamina said earlier it expected ExxonMobil to resume gas
production by the end of this month or in early July.
Repair work is estimated to take three weeks, after which gas
is expected to start flowing to the nearby Arun liquefied natural
gas (LNG) plant.
Pertamina hopes to see enough gas flowing into the Arun LNG
plant to allow it to operate at 50 percent of its capacity before
rising to 100 percent by the end of July. The Arun plant operates
four LNG trains.
ExxonMobil abandoned its Arun operation in mid-March due to
increasing harassment from armed groups, believed to be members
of the Free Aceh Movement.
The company has been resisting government pressure to return
to restive Aceh, saying that security was its number one concern.
But earlier this month Pertamina gave ExxonMobil an ultimatum
to take "concrete action" toward the resumption of Arun gas
production, or Pertamina would take over the operation.
ExxonMobil was given one week to send a team to Arun and begin
repair work at the site. It remains unclear whether ExxonMobil's
return to Arun was the result of Pertamina's ultimatum.
A senior Pertamina official has said ExxonMobil had already
agreed to return to Arun by the time Pertamina delivered its
ultimatum.
He said a security team returning from Arun late last month
concluded the security situation there was favorable for a
return.
"Overall, the situation in the Arun area of operation has
improved," Julia said.
Aceh is the scene of fighting between government troops and
the Free Aceh Movement.
This year alone, hundreds have been killed in Aceh, most of
the victims civilians. ExxonMobil evacuated its staff following a
string of mortar attacks on its compound. The company also
reported extortion by armed groups, and said its supply plane had
often been fired on.
Julia declined to reveal the losses incurred by ExxonMobil
since it left Arun. "We haven't calculated that figure yet."
Arun supplies LNG to Japan and South Korea. Its buyers
are Japan's Tohoku Electric Power Co., and South Korea's Korea
Gas Corp. and Korea Electric Power Corp.
At full capacity, Arun's LNG exports earn Indonesia about
US$100 million a month.
Indonesia is currently making up for the cessation of
operations at Arun with excess LNG from the Bontang LNG plant in
East Kalimantan.
It is feared that the excess LNG from Bontang will be
exhausted by the end of July, when LNG demand is predicted to
outstrip Bontang's capacity.
Aside from exporting LNG, ExxonMobil's Arun gas fields also
supply natural gas to nearby fertilizer companies.(bkm)