Exxon to sell Aceh oil, gas assets

US oil, gas giant Exxon Mobil Corp. is beginning process to sell its gas operations in Aceh, where it has been operating for more than 40 years now.

?ExxonMobil is marketing the shares it holds in three companies associated with the Aceh gas and LNG producing operation in Indonesia. The companies are Mobil Exploration Indonesia Inc., ExxonMobil Oil Indonesia Inc., and Mobil Indonesia LNG Inc.,? the company?s Indonesian unit said in a statement.

In 2010, the assets being marketed produced an annual average of 215 MMCFD gas (net) plus associated liquids. The assets include the Arun field and Arun satellite fields, and the North Sumatra Offshore field, it said without giving further detail.

Exxon?s oil, gas operations in North Aceh has been exporting gas since 1978 in the form of LNG that was processed at Arun NGL. Exxon also supplies gas to local fertilizer plant.

At its peak in 1994, the Arun Field produced about 3.4 BCFD of gas per day and about 130,000 barrels of condensate per day (1989). According to the company?s website, Arun has exported more than 4,000 cargoes of LNG to Japan and South Korea since 1978.

The company?s production from the Aceh gas fields have been constantly decreasing due to reserves depletion.

?The decision to market the shares is consistent with ExxonMobil?s longstanding practice of continually reviewing assets for their contribution to ExxonMobil?s operating and financial objectives, as well as their potential value to others,? the company said. (godang)