ExxonMobil in talks with PLN on CBM offtaking agreement

Indonesian unit of US super major ExxonMobil Corp. is in talks with state electricity firm PT Perusahaan Listrik Negara (PLN) to buy gas from its three CBM exploration blocks in South Kalimantan.

ExxonMobil Oil Indonesia senior official Maman Budiman said in parallel with the discussion with PLN, the company and its local partner PT Sugico Graha were currently preparing pilot drilling in the three blocks. ?We will start driling at the end of this year,? he said.

In January 2010, Maman said ExxonMobil has farmed-in Banjar 1, Banjar 2 and Barito Tapin CBM exploration blocks which are operated by PT Sugico Graha.

Maman did not give details about Exxon?s percentage of interest in the blocks but said that Sugico will retain the blocks' operatorship. (godang)