Exxon/Mobil sticks by RI despite violence

Exxon/Mobil sticks by RI despite violence

KUALA LUMPUR (Reuters): Exxon/Mobil Corp will not pull out of
Indonesia or scale back investments due to violence in Aceh
province where eight of its workers were briefly held hostage at
the weekend, a senior official said on Tuesday.

"We have a very strong commitment to Indonesia and a very good
relationship with Indonesia, and we will continue to look for
opportunities to invest in Indonesia," Lance Johnson, vice
president of ExxonMobil Production Co, Southeast Asia/Australia,
told Reuters.

The employees of Exxon/Mobil were released unharmed on
Saturday after being held for six to seven hours by armed gunmen
who had demanded a ransom of Rp 4 billion (US$460 million).

Baihaki Hakim, the head of Indonesia's state oil company,
Pertamina, said on Monday seven employees had been released but
no ransom was paid.

In recent months Exxon/Mobil has faced rising violence in the
restive province of Aceh and has evacuated most of its workers'
dependents, leaving only critical staff at the site, industry
sources said.

In March, separatist rebels shot and damaged an aircraft
chartered by the company, wounding two passengers.

"We are optimistic that the current situation would be
peacefully resolved," Johnson said, speaking on the sidelines of
the Asia Oil & Gas Conference in Malaysia's capital.

Johnson, who said "kidnap" was too strong a word for the
detention of the workers, said the incident took place in a
remote area of the company's operations.

"We are very concerned over the safety and security of our
people and we are very pleased with the strong support we are
getting from Pertamina," he said.

Speaking to reporters on Monday, Pertamina chief Baihaki said
security had been stepped up around the Aceh liquefied natural
gas (LNG) plant and gas fields. But he admitted it was difficult
to ensure security, especially in remote areas.

"The most vulnerable (to bomb attacks) are gas wells. Some are
in remote areas. No way we can protect this seven days a week, 24
hours a day," he said.

Baihaki said Pertamina had received numerous bomb threats and
was trying to improve its community relations in the area so
locals could help look after the facilities.

Asked if there was need for greater police and military
protection, Johnson said: "That's an issue for Pertamina and the
military and the government of Indonesia to help work out for
us."
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