Exxon says Aceh LNG production to continue after contracts expire

US oil, gas giant Exxon Mobil Corp. said it would still be producing gas from its Aceh fields after LNG supply contract with East Asian buyers would expire in 2014.

ExxonMobil Oil Indonesia (EMOI) VP External Relations Maman Budiman told Petromindo.Com on Monday that supply contract with South Korea?s Kogas would expire in 2010, while contract with Japanese buyers would expire in 2014.

?After that, Arun NGL will still be producing LNG to make up for previous commitments that can not be fulfilled earlier or known as deferred cargoes. The remaining gas could be allocated for domestic supply,? he said.

He did not say the volume of gas EMOI would be producing after 2014.

EMOI supplies the entire gas supply for Arun NGL from its gas fields namely Arun PSC, Pase PSC and NSO PSC.

According to Maman, EMOI will produce 700MMCFD of gas in 2009, or equal to 42 LNG cargoes. The figure was lower than the 45 cargoes of LNG Arun shipped last year.

PSC contract for Pase will end in 2011, while Arun and NSO will expire in 2018, Maman said EMOI has yet decided whether it would apply for contract extension for the blocks.

Arun had been producing LNG since 1978 and had shipped 4,142 cargoes of LNG as per December 31, 2008.(godang)