ExxonMobil confirms exiting Indonesian CBM venture
Thursday, December 26 2013 - 05:58 AM WIB
US oil and gas giant ExxonMobil Corp. confirmed its intention to quit Indonesian coal-bed methane (CBM) exploration venture.
?ExxonMobil?s Indonesian affiliate has negotiated a conclusion to its CBM agreement with Sugico and will exit from four Barito Basin CBM production sharing contracts (PSC),? Erwin Maryoto, Vice President Public & Government Affairs, ExxonMobil affiliates in Indonesia told Petromindo.Com.
?The decision to exit the PSCs is consistent with ExxonMobil?s long standing practice of continually reviewing assets for their contribution to the company?s operating and financial objectives, as well as their potential value to others,? Erwin added.
Last week, Canadian CBM developer CBM Asia reported that Exxon Mobil has notified about intention to quit Indonesian CBM industry and apparently cancelled a farm-in deal with CBM Asia that would have given the latter equal interest with EMOI in the CBM blocks.
According to CBM Asia, the four blocks involved are: Barito I, Banjar I, Banjar II and Tapin blocks, where ExxonMobil and CBM Asia would have held equal interest of 35 percent, 37.5 percent, 37.5 percent and 35 percent, respectively should the farm-in deal succeed.
Erwin said that the reason ExxonMobil did not proceed with the deal with CBM Asia was because ?the period for a farm out agreement to be completed with CBM Asia lapsed.? He did not give further detail.
ExxonMobil?s partner in the Barito Basin venture is PT Sugico Graha through its wholly owned subsidiary PT Transasia Energy Resources.
Editing by Alexander Ginting