ExxonMobil criticized for ignoring local residents' welfare

ExxonMobil's bad treatment against residents living near its gas production sites in Lhokseumawe, North Aceh has partly contributed to the people's resentment against the American oil and gas giant's operation, according to a local legislator.

Sharif Lamar, the chairman of the Commission D of the Legislative Council of the North Aceh Regency, said in Lhokseumawe on Saturday the American company had so far paid a little interest in the improvement of the local people's welfare.

"The condition of the residents living some 100 meters from ExxonMobil production sites are really concerning," he said. "The company should change its social approach if it wants to operate successfully in the future," he added.

According Sharif the lack of the company's attention to the local is partly due to the failure of the management in providing a good public relationship. As most of the company's public relations officials are posted in the Jakarta headquarter, the relations with the local people are often ignored, he added.

ExxonMobil, which supplies natural gas to Arun LNG Plant and several other companies in the province, has stopped its operations since March 9 due to security concerns.

The closure has caused Indonesia financial losses of about US$100 million due to its failure to meet LNG exports to Japan and South Korea.

Pertamina's director for production sharing management division, Arifin Takhyan, said early last week that the security situation had improvement, allowing the company to resume its operations by the end of May. (*)