CBM Asia Says Exxon Plans to Exit Indonesia CBM Industry

CBM Asia Development announced Thursday that ExxonMobil has advised it planned to exit the Indonesia CBM industry.

“CBM Asia is reviewing a draft termination agreement offered by ExxonMobil. The company has requested compensation for the extensive planning and technical support the company has provided to ExxonMobil to help it fulfill its PSC obligations during the past 18 months,” CBM Asia said in a statement.

Last year, CBM Asia Development Corp. signed a joint venture agreement with ExxonMobil to farm into four existing coal bed methane production sharing contracts (PSC) in the Barito Basin, South Kalimantan, Indonesia and acquire rights to farm into certain additional PSCs in the Kutai Basin, East Kalimantan.

Earlier this month, CBM Asia signed a $30 million 'Loan with Warrant' MoU funding package with a prominent “European family office” which included a $15 million letter of credit facility required by ExxonMobil under the Barito Basin farm-in Umbrella Agreement. The MoU was presented to ExxonMobil on December 13.  

Meanwhile, CBM Asia also said that it has signed a Letter of Intent with an Indonesian oil and gas company to negotiate a JV/farm-in deal on four coal bed methane PSC’s in South Kalimantan.

CBM Asia retains various interests in five other awarded PSC’s in Indonesia which were not covered by the Umbrella Agreement with ExxonMobil, the company said.

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