Exxonmobil to farm out in Surumana Block

By Godang Sitompul

Following the negative results of four drilled wells in Surumana Block, Makassar Strait, last year, ExxonMobil Indonesia, a local subsidiary of US-based oil and gas company ExxonMobil Corp., has planned to farm out its interest in the block.

Exxon has asked the government for the opening of data room of the Surumana Block since early 2012, but until this month (May) there has been no interests yet from other companies. Later, it has asked the government to extend the opening of the data room.

"It seems that?s the case. Exxon asked the government to extend the opening of data room of the Surumana Block,? A.Eddy Hermantoro, Director of Upstream Business Development at the Directorate General of Oil and Gas, told Petromindo.com in Jakarta over the weekend.

He refused to give any further details, but a reliable source told Petromindo.com that Exxon?s partner in the block, Petronas Carigali Bhd, had also decided to sell its 20 percent interest in the block.

It was reported last month that ExxonMobil Indonesia, was still carrying out a post-drilling evaluation following negative results of four wells it drilled last year in Surumana and Mandar blocks, Makassar Strait.

?After drilling 4 wells in deepwater sea without finding sufficient commercial reserves, we are now undergoing evaluation to determine our next step,? said Asep Sulaiman, Senior Vice President of Exploration & External Relations at ExxonMobil Indonesia.

Exxon Mobil Indonesia operates two blocks in Makassar Strait: Surumana block, for which a contract was signed in September 2006, and Mandar block, which was secured in 2007.

Asep declined to comment on suggestions that the company would return the two blocks to the government following the unfavorable drilling results. ?The evaluation is still underway, once it is completed then we?ll decide what to do next,? he said.

ExxonMobil Indonesia is also selling its assets in Aceh, but so far there is no company offering a suitable price for Exxon. In August last year, the company announced its intention to sell its assets in the province, including the Arun field and North Sumatra Offshore block. Several companies have voiced interest in the assets, but none of them made a good offer.

?Once we have found a bidder who offer suitable price, we shall release the asset. We don?t need to release the assets if the (bidding) price is not suitable,? said Asep Sulaiman. ?So far, no decision has been made to release the assets,? he added.

Editing by Benget Besalicto Tnb.