Release: EMOI: Theft of Chemicals at EMOI Operated Facility in Arun Field

(Jakarta - November 12) Over recent days, there has been considerable comment in the media about a chemical theft and resulting spill incident that was allegedly caused by ExxonMobil Oil Indonesia Inc. (EMOI) in Arun Field, North Aceh. It is important that you understand the issues and the efforts EMOI is conducting to resolve them.

Jeff Jones, EMOI Aceh Production Operations Manager, pointed out that ExxonMobil and the community are both impacted by this incident. The appropriate authorities have been notified and investigations are continuing. We are diligently working with BPMIGAS and other agencies to resolve the claims associated with the incident.

The investigation by EMOI indicated that seven (7) drums containing chemical products were stolen from the Construction Warehouse in an EMOI operated facility. We can confirm that the drums were removed by third parties who illegally entered the warehouse. The drum's contents were dumped nearby and entered an adjoining water ditch during subsequent rainfalls. This event produced a strong odor that was reported by local villagers. During these rainfalls, storm water runoff transported the chemical effluent down the drainage ditch alongside the warehouse site and into the public irrigation system, eventually dispersing the chemical effluent into a rice field located about 2.5 km downstream from the warehouse.

The seven drums of chemicals included six drums of corrosion inhibitor and one drum of non-emulsifier. These materials are used to delay corrosion of steel pipes used in drilling activities. Short-term exposure to these rain-diluted chemicals does not pose health risks. These chemicals do not persist in the environment and quickly degrade when combined with rainfall and exposure to the elements (air/water/earth/sunlight). We are implementing a remediation plan that will dispose of any potential long term exposure.

Our immediate action will be to clean up and remediate the affected areas. This will include soil removal and neutralization, draining of water wells and soil/water monitoring activities. We are working with a leading Indonesian company that has an extensive and comprehensive expertise in chemical management and treatment of sites exposed to chemicals. We expect to start the remediation work at the impacted locations within the next few days.

One rice field was reportedly affected due to this incident. EMOI is working with the communities to minimize further impacts. We have identified those farmers whose field was reported as being affected and are working with them to determine potential financial loss. We continue to encourage those who have health concerns to visit the closest Civic Mission Clinic, a clinic built by EMOI to provide quality health care to the surrounding community.

Jeff added that the events that took place and the resulting impact was not due to EMOI's mishandling. All materials in the warehouse were properly stored. The impact to community property was the result of this theft incident and subsequent dumping of chemical materials into the ditch.

We are sensitive to the concerns of the community and we are addressing them. As a good neighbor, we will continue to identify ways to assist members of the community who may have been impacted by this unfortunate incident. We will meet with villagers to discuss their concerns and our efforts to minimize the impact of this incident.

For over 30 years, EMOI has conducted its operations in Aceh with great concern for the environment. Extensive safety, health and environmental management systems are in place to effectively handle all production activities and minimize possible impacts to the environment.

EMOI's environmental management systems are consistent with Indonesian regulations, and ExxonMobil's global company policies and practices. All operations in Aceh are rigorously monitored and results of activities are reported to the appropriate authorities, at all levels in the government. (end of release)