ExxonMobil prepares to resume operation this month

ExxonMobil Oil Indonesia is trying to resume the operation of its gas fields in North Aceh this month as demanded by state-owned oil and gas company Pertamina, Detik.com reported on Monday.

ExxonMobil?s spokesman said in Jakarta on Sunday that the American oil and gas giant felt the need to re-operate the gas fields in the troubled province in an effort to safeguard its investment in Indonesia, as well as to help the Indonesian economy.

The source, who did not want his name to be identified, said ExxonMobil had already sent a team to cooperate with Pertamina to prepare for the re-operation of the gas fields.

?They want to see the security situation in the troubled province to find whether it is feasible or not to re-operate the oil fields,? the source was quoted as saying by Detik.com.

Pertamina warned ExxonMobil last week that it would temporarily take over its gas fields in Arun, if the company did not resume the operation this week.

Pertamina?s president Baihaki Hakim had asked ExxonMobil?s officials to start repairing all broken pipelines in the fields in one week as the first step to resuming operation, The Jakarta Post reported last week.

ExxonMobil suspended its operations in the Arun gas fields since March due to security harassment from armed groups believed to be members of the Free Aceh Movement, who has fought for years to gain independence from Indonesia.

The closure forced the nearby Arun liquefied natural gas )LNG) plant to stop its operation, cutting LNG supply to Japan and South Korea. So far, Pertamina has been able to cover the shortage with the excess LNG from its Bontang LNG plant due to a decline in the order from Arun?s buyers in Japan and South Korea.

But Baihaki said after July that the excess LNG production would no longer be enough to meet the demand and Pertamina would have to seek LNG from other countries to fulfill the Arun gas plant?s export commitment. (*)