ExxonMobil returns three oil blocks

ExxonMobil Oil Indonesia has decided to return three oil and gas blocks currently under exploration to the government because they are not economically feasible for further development, a senior official of interim upstream authority SK MIGAS said.

?After being returned and processed by the energy and mineral resources ministry, the three blocks will be offered to other companies,? SK MIGAS Public Relations, Security, and Formality Division Head Hadi Prasetyo said in Jakarta on Monday.

?When the three blocks are re-tendered, then we?ll prioritize the national companies,? he said as reported by Kontan on Tuesday.

According to him, the three blocks are Surumana block and Mandar Block in Sulawesi Sea, and Gunting block in Jombang, East Java.

The contracts of the three blocks will end this year after six year contracts for explorations.

?ExxonMobil decided to return the three blocks because they were not attractive for development,? he said.

Erwin Maryoto, Vice President for Public and Government Affairs of ExxonMobil confirmed that his company would return the three blocks to the government because they were not economically feasible for further development. ?We are waiting for the government?s approval,? he said. (*)