ExxonMobil Indonesia plans to return Aceh assets to govt
Friday, February 15 2013 - 02:18 AM WIB
ExxonMobil Indonesia, a unit of ExxonMobil Corp, is considering to return to the government its entire oil and gas block assets in Aceh because they?re deemed to be no longer economical for further development, according to a source.
?ExxonMobil Indonesia is considering to return its entire oil and gas block assets in Aceh. They don?t want to continue (operating the assets) because production is no longer economical,? the source told Petromindo.com.
The source added that the plan comes as the company?s contract to sell LNG from the Arun LNG refinery with buyers in South Korea will end in 2014.
The company had cancelled an earlier plan to sell its interest in the Aceh assets including Block B, North Sumatra Offshore, and Arun Satellite Field.
ExxonMobil Indonesia declined to comment. Meanwhile, Vice Minister for Energy and Mineral Resources, Susilo Siswoutomo claimed he was unaware that ExxonMobil was considering to return the assets. ?I don?t think they have such a plan.?
Petromindo.com reported earlier that the company has decided to return three oil and gas blocks currently under exploration to the government because they are not economically feasible for further development. The three blocks are Surumana block and Mandar Block in Sulawesi Sea, and Gunting block in Jombang, East Java.
Editing by Reiner Simanjuntak