Pertamina may takeover Aceh gas operations

Thursday, June 14 2001 - 11:38 AM WIB

State oil and gas company Pertamina said Thursday it would meet with American oil and gas company ExxonMobil on Friday to find out whether the latter had already had a clear plan and timetable to restart its Aceh gas operations.

?Last week I gave ExxonMobil one week to prepare for real steps to restart Aceh gas operations, including to start fixing the broken pipeline. Tomorrow we want to hear whether ExxonMobil has a strong commitment to immediately restart operations?, Pertamina president Baihaki Hakim told reporters after a hearing with Parliament

Baihaki said if by Friday ExxonMobil did not come with concrete plan and timetable to resume operations, Pertamina and the government would take necessary steps to ensure the resumption of gas operations, including to temporarily taking over gas operations from ExxonMobil.

?If this uncertainty prolongs, then according to the contract, we have the right to take over the operations,? said Baihaki.

Baihaki said he would also a meeting with minister of energy and mineral resources Purnomo Yusgiantoro and Vice President Megawati Sukarnoputri on Friday after hearing ExxonMobil?s stance on the matter.

ExxonMobil sent its team last week to Aceh to study the detail of the resumption of operations.

Baihaki earlier said he was optimistic ExxonMobil could resume operations of at least 25 percent of the gas field capacity in two weeks and expected to resume full operations of its gas field in Lhok Sukon by end of July.

However, a source in ExxonMobil was quoted by Dow Jones Wednesday that ExxonMobil might not be able to restart operations in two weeks.

ExxonMobil official contacted by Petromindo.com refused to comment on the matter.

ExxonMobil was forced to shutdown its gas production facilities early March due to worsening security condition in Aceh, causing Arun LNG plant and fertilizer plant which depended solely on gas supply from ExxonMobil to stop operations. (alex/godang)

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