Pertamina threatens to ask ExxonMobil to withdraw its RI executives

State oil and gas company Pertamina's president Baihaki Hakim warned on Thursday he would ask ExxonMobil Corp's headquarters in the United States to withdraw its top executives in Indonesia if they kept refusing to restart the preparatory works for its gas operation in Aceh.

Baihaki told reporters in Anyer, West Java that he had given ExxonMobil Oil Indonesia Inc, the Indonesian unit of ExxonMobil, between two or three days to restart its preparatory works at its Arun gas fields in the Lhok Sukon area.

"If the company does not restart the preparatory works within the timeframe, I will ask ExxoMobil's headquarters to withdraw their operation leaders here and replace them with ones who are experienced with operations in trouble areas," Baihaki said during an oil and gas workshop.

ExxonMobil stopped its gas operation in Lhok Sukon in March on security problems stemming from the conflicts between the Indonesian military and police with local rebels. The action forced Pertamina's liquefied natural gas (LNG) unit PT Arun NGL Co to stop its LNG production and exports.

Last week, the company agreed to resume its gas operation and started preparatory works. But, the company halted the preparatory works following a bomb explosion near its gas fields Monday morning.

ExxonMobil claimed that the expolosion injured one of its workers and damaged one of its vehicles. It refused to continue the peparatory works, saying the bomb explosion indicated the prevailing unstable security conditions in the area.

Pertamina's officials however said ExxoMobil exaggreated the incident, claiming that the injuries and damage inflicted on the ExxonMobil worker and vehicle were only minor.

Baihaki admitted that Aceh was a trouble area, but he insisted that the security condition in the area has improved to the level prior to the suspension by ExxonMobil of its gas operation.

He noted that operating in trouble areas was nothing unusual for oil and gas industries. All major oil and gas companies have staff who are experinced with operation in dangerous areas.

"For instance, when I worked for Caltex (PT Caltex Pacific Indonesia, the company's headquarters once witdrew its operation leader here because the person was unable to confront rampant demonstrations. Caltex's headquarters then replaced the man with someone who is experienced with that kind of situation," Baihaki recalled.

Baihaki was Caltex's president for several years before he was appointed Pertamina's president last year (Godang/Alex)