ExxonMobil's operation still running smoothly in troubled Aceh

JAKARTA (JP): The second day of operation of ExxonMobil Oil Indonesia's Arun gas fields in Aceh is running normally and gas production is expected to increase within the next few days, according to a company' senior official.

ExxonMobil spokeswoman Julia Tumengkol said on Thursday that ExxonMobil would likely increase production as the company continued to restore the gas field facilities.

She also said that the plan to increase production would also depend on the latest security situation.

"We're now still operating the gas fields on a day to day basis," she told The Jakarta Post.

The company is now pumping gas from Cluster II, one of four clusters operated by ExxonMobil, a unit of the U.S.-based Exxon Mobil Corp.

Sidick A Nitikusuma, head of general affairs at state oil and gas company Pertamina's directorate of production sharing management, said earlier that the resumption of operations would enable nearby liquefied natural gas (LNG) producer PT Arun NGL to recommence its LNG production in mid-August.

Meanwhile, a South Korea official at the Ministry of Commerce, Industry and Energy, or Mocie, said as quoted by Dow Jones, that South Korea hoped liquefied natural gas imports from Indonesia's Aceh province could resume starting October.

However, the official said it was not immediately clear when Indonesia would restart its LNG exports.

Indonesia told Mocie that it would restart providing LNG to South Korea starting August, but South Korea does not have the room to receive the volume until October, the official said.

"We can't receive LNG (from Aceh) until October because South Korea has already made arrangements to replace the LNG supply from Aceh until September", the official said. However, Indonesia has not confirmed when natural gas exports from Aceh will restart, he added.

An official at Korea Gas Corp., or Kogas, also said Kogas has secured enough LNG until September. However, the official said Kogas anticipates a shortage of supply if Indonesia does not provide LNG from Aceh after September as South Korea's LNG demand rises in the second half of the year due to seasonal demand.

Indonesia is South Korea's largest LNG supplier. South Korea has a long-term contract with Indonesia to import 5.3 million metric tons of LNG a year.

South Korea also receives 11.56 million tons of LNG a year from its other contract LNG suppliers, Malaysia, Qatar, Oman and Brunei. (05)