ExxonMobil And Chevron Sign Gas Deals in Indonesia

Under the agreements signed ExxonMobil is expected to supply gas to fertilizer and related products company PT Petrokimia Gresik and to the state electic power company PT PLN.

As for Chevron, it will provide gas to fertilizer producer PT Pupuk Kaltim.

Earlier this week, Chevron said it was reviewing its business plans in Indonesia, but remains committed to developing natural gas fields offshore from East Kalimantan.

Meanwhile, the new gas supply agreements with Chevron and ExxonMobil reflect a change in policy for the Indonesian government, which is requiring stronger commitments from international oil companies in the country to make part of their production available to the domestic market.

Finance Minister Sri Mulyani Indrawati underlined that change of policy at a conference earlier in the week, revealing government plans to prioritize gas production for domestic consumption instead of exports in the coming years.

Author: Ksenia Kochneva