Exxon will not extend its contract on three gas blocks in Aceh

ExxonMobil Oil Indonesia will not extend its contract on three gas blocks in Aceh including the Arun block, North Sumatera block and Pase block due to the depletion of their gas reserves, Kompas reported on Tuesday.

The company's vice president planning/commercial and public affairs Maman Budiman said in Jakarta on Tuesday that the depletion of the gas reserves made the three gas blocks no longer feasible for further development.

Under the current contract which will end in 2018, ExxonMobil produces natural gas from the three blocks to support Arun liquefied natural gas (LNG) plant in Lhok Seumawe, northern Aceh.

"The current LNG export contract to East Asia will end in 2014. After that we will no longer extend the contract," he was quoted as saying.

At present, ExxonMobil produces about 1 billion cubic feet per day. In 2005, the company shipped about 75 cargos of LNG to Japan and South Korea, the main buyers of its LNG.

In addition, Maman said Exxon had also decided to pull put from the Block A gas block, also in Aceh. "The company is still studying the offers from about 18 companies to buy its 50 percent non-operating interest in the block," he said. (*)