CBM Asia: ExxonMobil quits Indonesian CBM industry
Friday, December 20 2013 - 12:23 AM WIB
US oil giant ExxonMobil Corp is planning to exit the Indonesian coal-bed methane (CBM) industry, according to Canadian CBM developer CBM Asia Development Corp.
CBM Asia has agreed in 2012 to farm-in ExxonMobil?s four CBM PSCs in Barito Basin, South Kalimantan, and on December 12, 2013 it signed a US$30 million loan with warrant MoU funding package with a prominent European family office which included a $15 million letter of credit facility required by ExxonMobil under the Barito Basin farm-in umbrella agreement.
?The MoU was presented to ExxonMobil on December 13. However, CBM Asia was advised by ExxonMobil on December 16 that it planned to exit the Indonesian CBM industry,? the company said.
?CBM Asia is reviewing a draft termination agreement offered by ExxonMobil. The company has requested compensation for the extensive planning and technical support the company has provided to ExxonMobil to help it fulfil its PSC obligations during the past 18 months,? it added.
The four CBM blocks involved are: Barito I, Banjar I, Banjar II and Tapin blocks, where ExxonMobil and CBM Asia hold equal interest of 35 percent, 37.5 percent, 37.5 percent and 35 percent, respectively.
Separately, on Thursday CBM Asia signed a Letter of Intent with an undisclosed Indonesian oil and gas company to negotiate a JV/farm-in deal on the four CBM PSCs in South Kalimantan. ?The company continues to work with the European family office to arrange a funding package to support any agreement entered into,? it said.
CBM Asia retains various interests in five other awarded PSC?s in Indonesia which were not covered by the umbrella agreement with ExxonMobil.
Editing by Reiner Simanjuntak