Exxon signs Cepu gas agreement with PLN, PKG and Pertagas

Mobil Cepu Ltd. (MCL) a subsidiary of Exxon Mobil Corporation, as part of the Cepu Block Contractors, announced Monday the signing of two Memorandum of Agreement (MoA) extensions with PT Perusahaan Listrik Negara (PLN) and PT Petrokimia Gresik (PKG), for evaluating potential sales and purchases of gas from the Cepu Block.

The MoAs were first signed in January 2009 and represent an important step towards commercializing Cepu gas resources to meet domestic gas needs in Java.

On the same occasion, the Cepu Block Contractors also signed an agreement with PT. Pertamina Gas (Pertagas) to evaluate the potential for utilizing Pertagas? proposed pipeline to transport gas in East Java.

The company said these agreements demonstrate the Cepu producers? commitment to develop the Cepu gas fields to supply gas for the domestic market.

?We look forward to developing long term partnerships with PLN, PKG and Pertagas that will allow us to deliver natural gas to help meet growing Indonesian energy needs,? said Terry S. McPhail, President of ExxonMobil affiliates in Indonesia.

"This agreement will let our partnership continue to grow and enable the use of each other?s strengths to efficiently develop the substantial gas resources in Indonesia.?

The Cepu Block Contractors consist of Mobil Cepu Ltd., PT Pertamina EP Cepu and a consortium of four local government companies namely PT Sarana Patra Hulu Cepu (Central Java), PT Asri Dharma Sejahtera (Bojonegoro), PT Blora Patragas Hulu (Blora) and PT Petrogas Jatim Utama Cendana (East Java) who are contractors to the Government of Indonesia under the Production Sharing Contract for Cepu Block. (godang)