Govt Decides to Recommence ExxonMobil's Operations in Aceh

The Jakarta Post
June 28, 2001

JAKARTA (JP): The government has decided to recommence the operations of oil and gas company ExxonMobil Indonesia Inc. in Aceh province, suggesting a replacement for the position of company chief, an official said on Thursday.

State oil and gas company Pertamina president Baihaki Hakim said, while addressing the opening of an orientation workshop for oil and gas correspondents in Anyer, Banten province, that the decision was made during a two-day emergency meeting between the government, Pertamina and ExxonMobil in Medan, on Tuesday and Wednesday.

Baihaki said that as a consequence, the government had to increase security measures at ExxonMobil's gas fields and had to reactivate its field operations in a limited way, especially in the Lhoksukon and Arun areas.

"Now, the ball is in ExxonMobil's court, and it seems they are willing to continue with the operations. They need support," he said, as quoted by Antara news agency.

He said Pertamina would not tolerate it if ExxonMobil delayed its operations due to security disturbances at its Cluster IV gas field, while he observed a relatively conducive situation at Cluster I and Cluster II (Lhoksukon and Arun respectively).

Baihaki said the country could lose income of US$100 million per month and suffer a tarnished reputation with the international community if it failed to distribute the oil and gas exports on time. He added that the government and Pertamina would lose their patience if that happened.

He said that if ExxonMobil restarted operations, Pertamina would rescind its plan to acquire the company, although there were many other companies willing to take over the operations of ExxonMobil.

Baihaki also hinted that Pertamina might propose that the leadership of ExxonMobil Indonesia be replaced with personnel experienced in running gas fields in conflict areas.

"As an example, the civil war in Angola did not stop oil operations in that country. I think ExxonMobil should be able to do the same, as the key requirements for dealing with this situation are guts and courage," he said.

Meanwhile, deputy Army chief Lt. Gen. Kiki Syahnakri said in Banda Aceh on Thursday that the Indonesian military (TNI) would put all its efforts into an accelerated recovery of security in the troubled province.

"Vice President Megawati Soekarnoputri has hoped for an improvement in the Aceh problems in the near future. Therefore, TNI will make its operations more effective in Aceh," he told reporters, as quoted by the news agency, while citing an improvement in the soldiers' behavior as an example.

Kiki said that TNI had not thought of augmenting its troops in Aceh.

"There will be no additional troops. What we will do is to make our troops here more effective," he said.

He said that the two-month TNI operation in Aceh had enabled local people to resume their social and economic activities.

"The people's economic, social and cultural activities, as well as government activities, have started to return to normal," he said.

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