Exxon hopes to open Aceh gas fields in weeks
Monday, July 9 2001 - 06:52 AM WIB
It is the first timeframe given by the oil giant to restart output at the fields, shut down in March due to the cumulative effect of dozens of security incidents in the province where separatist rebels have been fighting for independence for decades.
``We hope to restart (production) within a few weeks,'' company spokeswoman Julia Tumengkol quoted by Reuters as saying.
``Over the past few weeks we have made substantial progress forward for the safe restart of onshore gas production in Aceh,'' she added.
Production is expected to be on a limited scale at first or until all repairs are completed.
Fresh doubt was cast over Exxon's plans to reopen the fields after a home-made bomb exploded in the area late last month and caused repair works to be suspended.
Repairs had only begun less than two weeks before the blast.
Exxon Mobil Indonesia -- a unit of the world's top energy firm, U.S.-based Exxon Mobil Corp -- is Indonesia's second largest producer of liquefied natural gas (LNG) with total output of 1.66 billion cubic feet per day.
The closure of the fields, which halted output at the PT Arun NGL gas plant, sent buyers in Japan and South Korea in search of alternative supplies.
State owned oil firm Pertamina has been consistently pressuring Exxon to resume output by July which is a critical supply period for Indonesia.
Exxon's plans to restart production come despite continued violence in the province, on the northern tip of Sumatra island but which has been concentrated in areas away from the fields.
At least 20 people were killed in the latest clash between the military and the Free Aceh Rebels (GAM) in the center of the province last week, according to police.
The clash occurred just ahead of the resumption of peace talks between Indonesia and GAM in Geneva. (*)