Medco to Acquire Exxon's Two Gas Assets in Indonesia

Indonesia’s PT Medco Energi Internasional in conjunction with two state-owned companies have decided to acquire two of Exxon Mobil Corp.'s , Dow Jones reported Thursday.

ExxonMobil is planning to offload its entire stake in Exploration Indonesia Inc., ExxonMobil Oil Indonesia Inc. and Mobil LNG Indonesia Inc., which manage its liquefied natural gas operations in Aceh province.

The assets for acquisition include Block B, wholly run by ExxonMobil at its Arun gas field, and the North Sumatra Offshore field, run by Mobil Exploration Indonesia.

The gas from the fields is delivered to the Arun LNG processing plant, which is operated by PT Arun NGL Co.--a joint venture between state-owned Pertamina, Mobil Oil Indonesia Inc. and Japan Indonesia LNG Co. The gas fields produced an average of 215 million cubic feet of gas a day plus associated liquids in 2010, Exxon has said.

The company considers the reserve no longer economically viable. Exxon started gas production in Aceh in the late 1960s.