Pertamina says ExxonMobil Arun gas output picking up: Report

ExxonMobil Oil Indonesia is producing up to 413 million cubic feet of natural gas a day (mmcfd), said a spokesman from Indonesia's national oil and gas company, state oil and gas firm Pertamina quoted by Dow Jones Newswires as saying Thursday.

Arun gas cluster I is producing 168 mmcfd and cluster II is producing 245 mmcfd, he added.

The onshore natural gas output has more than double from 200 mmcfd July 18 when ExxonMobil resumed operations after a four-month suspension.

Arun liquefied natural gas production plant, PT NGL Arun Co., is running one train which processes up to 350 mmcfd of natural gas.

ExxonMobil's offshore production is 200 mmcfd , the Pertamina official said.

Meanwhile, Reuters reported that an ExxonMobil Indonesia spokesperson said on Thursday production had picked up at two of its biggest gas fields in Aceh but output at the sites was still at less than 50 percent capacity.

Company spokeswoman Julia Tumengkol said there was no timeframe for re-opening the other sites, adding production at the two operating fields was still on a day-to-day basis.

"The two fields now operating account for 50 percent of production but they are still working at minimum capacity... not even at half capacity," Tumengkol told Reuters.

Pertamina expects excess LNG capacity August through September to reach 750,000-875,000 metric tons because one term lifter, Korea Gas Corp. has covered its requirement in that period from another source, the spokesman said.

The first LNG cargo to be offloaded from Arun is scheduled for Aug. 13 to Japan's Tokyo Electric Power Co., said the Pertamina spokesman.

Pertamina is trying to dispose of the excess LNG available up to September in the spot market following the first August loading, he said.

"Hopefully, Kogas will resume Arun LNG loadings from October onwards," he said.

Otherwise the excess LNG from Arun could reach eight or nine 125,000-metric-ton cargoes by October, according to a local media report this week.

Pertamina is expected to face difficulties in finding homes for the excess LNG because most buyers secure their requirement via long-term contracts.

ExxonMobil shut its onshore gas operations in the restive Aceh province in March, citing security concerns, halting Arun LNG exports as a result. (*)