PGN mulls buying ExxonMobil?s Sumatra gas assets

Perusahaan Gas Negara, the state-controlled gas distributor, seeks to buy one of ExxonMobil?s assets in North Sumatra to secure supply in the country, the Jakarta Globe reported Friday, quoting a company official.

?This is not a simple purchase. We should take a close look at the details of the asset,? said Wahid Sutopo, Director of Investment and Risk Management at PGN. ?The company is discussing the possibilities. We haven?t decided anything." he said without disclosing any details of the plans being discussed.

Exxon Mobil announced earlier this month that it wanted to sell its shares in three companies associated with gas and liquefied natural gas producing operations in Aceh: Mobil Exploration Indonesia, ExxonMobil Oil Indonesia and Mobil Indonesia LNG.

The US oil and gas giant said in a statement last week that the assets on sale included the Arun field and the North Sumatra offshore field. According to the company?s data, as of 2010, those assets produced about 215 million standard cubic feet of gas per day (mmscfd).

PGN has set aside $250 million to acquire gas blocks in Sumatra this year. Wahid did not specifically mention if some of the funds would be used to finance the proposed purchase of Exxon Mobil assets. (*)