Govt, ExxonMobil fail to reach agreement on gas operations

Govt, ExxonMobil fail to reach agreement on gas operations

JAKARTA (JP): The government failed on Wednesday to reach an
agreement with American oil and gas giant ExxonMobil on the
timetable for the resumption of production at the company's gas
fields in Arun, Aceh.

Company executive vice president Bill Scuggins told reporters
the company still needed to further discuss matters with the
government before deciding whether to resume operations of the
gas fields, which the company closed last week due to security
concerns.

"We shall continue our discussions with the minister,"
Scuggins said after a meeting with Minister of Energy and Mineral
Resources Purnomo Yusgiantoro.

Scuggins refused to comment further on the meeting or discuss
the company's plan regarding the closed gas fields.

Scuggins flew from the United States to meet government
representatives following mounting pressure from the government
on the company to resume operations.

Purnomo was earlier quoted by the local media as saying that
the government expected to make a final decision on the fate of
ExxonMobil's gas fields in the meeting with top executives from
the company's headquarters.

The president of state oil and gas company Pertamina, Baihaki
Hakim, who accompanied Scuggins in the meeting, told reporters
ExxonMobil was interested in resuming operations of the fields
but would only do so if the situation in the vicinity of the
fields returned to normal.

"ExxonMobil said if the situation around the fields was as
secure as two months ago, it would resume operations," he said.

The suspension of gas production by ExxonMobil has forced
liquefied natural gas (LNG) producer PT Arun NGL Co, which relies
on the company for its natural gas supply, to stop production as
well as LNG shipments to South Korea and Japan. (03)