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." y