Exxon confirms Arun LNG operation termination
Thursday, May 22 2014 - 12:11 AM WIB
US oil giant ExxonMobil Corp. confirmed on Wednesday that it will stop processing gas produced from its Aceh gas fields at Arun LNG plant when the last LNG contract to South Korea will expire in October this year.
ExxonMobil Oil Indonesia VP Public Affairs and Government Relations Erwin Maryoto told Petromindo.Com that gas from Exxon will be supplied to fertilizer maker PT Pupuk Iskandar Muda (PIM) until the end of the blocks? contract in 2018.
Erwin said that Aceh gas fields currently produced 270mmcfd of gas but the volume would decrease by October due to reserves depletion.
He, however, said that the decision to supply gas to PIM will depend on government.
Exxon has 100 percent interest in Block B Arun and North Sumatra Offshore blocks, which has been producing gas since 1978.
A Petromindo.Com source, however, said that Exxon also proposed option to the government to continue processing gas into LNG and sell it on spot market.
Editing by Alexander Ginting