Exxon Mobil to sell gas to PLN and PGN

ExxonMobil Cepu Limited will also produce gas from its Cepu block in East Java to help cope with the shortage of gas supply in the domestic market.

Speaking during a hearing with the House of Representatives? Commission VII on Wednesday, Maman Budiman, Vice President Public Relation and General Affair of ExxonMobil Oil Indonesia, said that gas from the Cepu block would be sold to state owned electricity firm PT Perusahaan Listrik Negara (PLN) and state owned gas distribution company PT Perusahaan Gas Negara (PGN).

?Documents on the memorandum of understanding between ExxonMobil Cepu Limited and PLN, and PGN were signed last year,? he said, adding that the Cepu block, which is currently being developed to become one of the country?s largest oil producers, has an estimated gas reserve of about 1.3 trillion cubic feet.

Maman said ExxonMobil Cepu Limited, which operates the Cepu oil block in cooperation with state owned oil and gas firm PT Pertamina, was currently capable of producing 25,000 barrels of oil per day (bpd) from the block but it was still unable to meet the production target due to the slow process of the construction of the refinery and pipeline facilities to distribute the oil.

"The daily production is standing at 18 000 bpd at present. About 13,000 bpd were distributed to Pertamina and another 5,000 bpd to the refinery owned by PT Tri Wahana Universal (TWU),? he added. (godang/bernard)