Indonesian Political, Business & Finance News

Pertamina issues warning to ExxonMobil Oil

| Source: JP:JSK

Pertamina issues warning to ExxonMobil Oil

JAKARTA (JP): The president of state-owned oil and gas company
Pertamina, Baihaki Hakim, said he asked ExxonMobil Oil Indonesia
Inc., a unit of American energy giant ExxonMobil Corp., to resume
its work in Aceh, warning he would demand a change in the
company's leadership if it refused to do so.

Baihaki said during a workshop in Anyer, Banten, that
Pertamina, on behalf of the government, had asked the U.S. firm
to resume preparations for the restart of its operations during a
two-day emergency meeting in the North Sumatra provincial capital
of Medan, which ended on Wednesday.

He said that if the company refused to do so, Pertamina would
ask ExxonMobil's headquarters in the United States to replace its
operation leaders in Indonesia with ones who would work in Aceh.

"As an example, the civil war in Angola did not stop oil
operations in that country. I think ExxonMobil should be able to
do the same, as the key requirements for dealing with this
situation are guts and courage," he said.

Baihaki said the government promised to boost security to
protect ExxonMobil's gas fields in Lhok Sukon.

"Now the ball is in ExxonMobil's court, and it seems they are
willing to continue with the operations. They need support,"
Baihaki said as quoted by Antara.

ExxonMobil halted its gas operation in Aceh in March due to
attacks blamed on the Free Aceh Movement. As a result, the nearby
PT Arun NGL was forced to halt its liquefied natural gas (LNG)
production.

The company agreed last week to begin preparatory work for the
resumption of its gas operation, but it halted the work following
a bomb blast near its gas fields on Monday morning.

Baihaki said he would not tolerate any attempt by ExxonMobil
to further delay the resumption of its operations.

He said Indonesia was losing US$100 million a month and had
its reputation as a reliable LNG supplier tarnished by
ExxonMobil's decision to suspend its operations.

Meanwhile, Indonesian Military (TNI) chief Adm. Widodo A.S.
said TNI currently had no plan to send reinforcements to
safeguard ExxonMobil's operations, saying the number of troops
now stationed around the company's facilities was sufficient.

TNI has deployed more than 2,000 soldiers to protect the
company's facilities.

"We have discussed ExxonMobil's case twice during Cabinet
meetings on social and security affairs. As far as security is
concerned, there is no reason for ExxonMobil not to resume its
operations.

"We are providing security," Widodo was quoted by Antara as
saying during a flight from the East Nusa Tenggara capital of
Kupang to Jakarta.

Widodo accompanied Coordinating Minister for Political, Social
and Security Affairs Agum Gumelar on a visit of East Timorese
refugee camps in East Nusa Tenggara. (jsk)

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