At least 1,400 workers of Arun NGL active again

At least 14,000 workers of PT Arun NGL Co., have resumed their activities after being asked to stay idle following the stoppage of the company's liquefied natural gas (LNG) production in early April.

Irwandi, the spokesman for Arun NGL, was quoted by Bisnis Indonesia daily as saying on Wednesday that the workers were called on to work again as the company was able to resume production using natural gas supplied by ExxonMobil Oil Indonesia Inc. from its North Sumatra Offshore (NSO) fields.

Although the gas supply is only enough to maintain the LNG plant's minimum production level, the workers have resumed works for the preparation for full operation early next month, he said, adding that with the supply from NSO gas field, Arun NGL could only produce two containers of LNG for its buyers in Japan and Korea.

State oil and gas company Pertamina confirmed that Arun NGL worker have been active again but he denied it was because Arun NGL had resumed production.

"They are only doing maintenance work," spokesman for Pertamina's production sharing management directorate Sidick A. Nitikusuma told Petromindo. Com Thursday morning.

ExxonMobil has several gas fields in the restive province in Aceh, including the Arun fields in Lhok Sukon in North Aceh and the NSO fields offshore Aceh.

The company suspended its gas operation in Lhok Sukon early March due to security concerns, but maintained production at the NSO fields. Normally, gas from NSO are only used to generate power at the Arun LNG plant.

Arun NGL is co-owned by state oil and gas company Pertamina, ExxonMobil and the South Korean and Japanese buyers.

The closure of the Arun fields had led to the halt of the operation of the Arun NGL in the province and the cessation of its LNG exports to South Korea and Japan.

Since the closure by ExxonMobil of its Arun fields, Pertamina has used the LNG supplies from the LNG plant in Bontang, East Kalimantan to meet the Arun export commitment to the two countries. But Pertamina said that the East Kalimantan-based LNG producer would be only able to help Bontang until June this year, because after that all of Bontang's LNG production is enough to meet the demand from its own buyers.

Meanwhile Pertamina's president Baihaki Hakim said early this week that he was optimistic that the state oil and gas company's contractor ExxonMobil would be able to resume operation early June following an improvement in the security situation in troubled province of Aceh.

"Overall situation in the province has significantly improved. This will enable ExxonMobil to resume its operation," he said. (Godang)