Exxon closes Indonesian oil fields

By Ian McMinn
Special to CNN

SYDNEY, Australia (CNN) -- For the first time in 30 years international oil company Exxon Mobil has closed down three oil and gas fields in Indonesia's northern Sumatra.

Exxon's unprecedented decision is the result of increased rebel activity in North Aceh, where guerillas from the Free Aceh Movement have been fighting for a separate Islamic state since the mid 1970s.

The fields at Lhocsukon, Pare and North Aceh normally supply Indonesia's state oil and gas company Pertamina with raw materials, including 1.6 billion cubic feet of liquefied natural gas (LNG) a day.

While much of the output is for export, the Exxon Mobil fields also provide petroleum products for domestic consumption.

"Butane and cooking gas are two of them," said Julia Tumengkol, a spokeswoman for Exxon Mobil. "But local industries like fertilizer and paper are also dependent on our fuel."

Tumengkol said Exxon decided to monitor the situation after a charter plane carrying employees was shot at late last year. "If anything it is worse now," she said.

There have been reports of fighting at Exxon sites, vehicles burned, other planes attacked, threats to staff and a kidnapping.

"Production will resume when we decide our employees are safe," Tumengkol said, "but for now our immediate concern is looking after them."

More than 3000 workers stood down

The company has stood down 3,250 people at the three fields, made up of 850 fulltime staff and 2400 contractors.

"Negotiations are continuing but the company has still not decided what to pay them and for how long," the Exxon Mobil spokeswoman said.

Meanwhile Indonesia's Mines and Energy Minister, Purnomo Yusgiantoro, said the military would send in even more soldiers to protect the fields.

"Indonesia will fulfill its obligations," the Minister insisted, "and secure the production centers over the next few days."

But the rebels' deputy leader Tengku Sofyan Daud said: "We can't give any guarantees as long as the security forces are there."

Pertamina
Exxon Mobil

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