Exxon to Sell Cepu Gas to Indonesia

ExxonMobil said it will develop gas reserves in the Cepu block and sell the gas to Indonesian consumers, including PLN and PT Perusahaan Gas Negara (PGN).

In 2009, Exxon signed a Memorandum of Understanding to supply gas from the block to state power utility PLN and state gas distributor PGN, reports The Jakarta Post.

Jambaran field, one of the fields within the block, will produce the gas. It has estimated reserves of about 1.3 trillion cubic feet of gas, which will be allocated to the state-owned enterprises.

ExxonMobil Indonesia spokesman Maman Budiman said that the company was still in talks about the most efficient concept for the development.

Exxon subsidiary, Mobil Cepu holds a 45% interest in the block, while state oil and gas company Pertamina holds another 45%.