ExxonMobil to cease Aceh LNG ops 2015

US super major ExxonMobil Oil Corp will cease its LNG operations in Aceh in 2015 when its remaining contract with South Korean buyer Kogas will expire and gas production would be longer be sufficient to justify LNG processing operations.

Exxon Mobil Oil Indonesia (EMOI) Spokesperson Maman Budiman Petromindo.Com on a sideline of Indonesian Petroleum Association (IPA) Conference and Exhibition in Jakarta on Wednesday that currently EMOI produces 300-400MMCFD from its Aceh gas blocks and the number will gradually dwindling to some 60 MMCFD in 2015 toward the blocks? contracts expiration in 2018.

According to Maman, Arun NGL plant could operate one unit of LNG liquefaction with gas input of around 300 MMCFD.

Maman said EMOI is in talks to supply its remaining gas production after 2015 towards the end of its PSC contracts to Aceh fertilizer maker PT Pupuk Iskandar Muda (PIM). ?After Kogas contract will end, EMOI will have capacity to supply 60 MMCFD to PIM,? he said.

Maman said that thus far, EMOI did not have plan to extend its PSC contracts in Aceh. (alex)