Pertamina warns ExxonMobil to prepare for operation resumption

State oil and gas company Pertamina on Friday threatened to take over ExxonMobil?s Arun natural gas fields in Aceh if the US-based firm did not resume operations there.

" I asked ExxonMobil to take concrete action (to resume operations), and if no concrete action is taken within one week, then we will consider alternative solution, including to temporarily take over the operation,? said Baihaki.

Baihaki said ExxonMobil had agreed to send the team to study the resumption of operations sometimes next week.

Baihaki also urged PT ExxonMobil Oil Indonesia Inc. to repair damaged pipes in the fields.

ExxonMobil has been reluctant to send the team to study the resumption of operation due to escalating tension in Aceh.

ExxonMobil, which supplies gas to the Arun LNG plant, was forced to close operations in three of its five Aceh gas fields on March 9 because of hijackings, arson and kidnapping threats allegedly by separatist Aceh rebels.

The shutdown threatens Indonesia's 100-million-dollar a month revenues from liquefied natural gas (LNG) exports to Japan and South Korea from the Arun LNG plant.

Baihaki said Pertamina's planned takeover was aimed at ensuring continuing LNG exports to South Korea, Taiwan and Japan.

?Demand for LNG will start to increase in the next few months, and if ExxonMobil has not resume operation by then, we will have to let buyers to look for other sources,? he said. (alex)