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 | Mining and Energy
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ExxonMobil Announces Major Indonesian Oil Discovery
IRVING, Texas--(BUSINESS WIRE)--April 12, 2001--Exxon Mobil Corporation announced today that Mobil Cepu Limited, an affiliated company, has made a major oil discovery in Indonesia following the successful completion of the Banyu Urip No. 3 (BU-3) well.
With estimated recoverable oil in excess of 250 million barrels, the BU-3 well is one of the most significant oil discoveries in Indonesia in the past decade.
The BU-3 well is part of the onshore Cepu Technical Assistance Contract (TAC), in Central and East Java provinces, Indonesia, of which Mobil Cepu is the operator. Pertamina, Indonesia's state-owned oil company, has accepted an option to acquire a 10 percent share of the project.
"This major discovery for ExxonMobil confirms the company's view that Indonesia remains an area for potential business growth. Although we have experienced recent security issues in North Aceh, we are pleased that our exploration drilling in Java has been successful. We look forward to working with Pertamina to quickly progress development and production, said Jon Thompson, president of ExxonMobil Exploration Company.
Indonesia PLN Calls For 20%-25%/Yr Rate Hikes
SINGAPORE -- Indonesian state-owned utility Perusahaan Listrik Negara needs to increase basic electricity tariffs by 20%-25% a year through 2005 in order to continue to meet national electricity demand, Indonesian news agency Antara reported.
Without the hikes or their alternative - government assistance through financial and assets restructuring or subsidy - it will be difficult for PLN to survive, PLN President-Director Eddy Widiono said Wednesday in Jakarta, after a meeting with Indonesian Vice President Megawati Sukarnoputri.
"We hope a favorable decision (on the rate increases) will be made for PLN at a limited cabinet session on economic affairs next week," Widiono said.
"Vice President Megawati already gave good signals just now," he added.
Without governmental assistance, PLN should charge US$0.07 a kilowatt hour, to meet operational costs, he said. "At present our income is US$0.03/kWh. To reach US$0.07/kWh, PLN has to raise basic electricity tariffs by 20%-25% a year for a period of five years," he said.
Any tariff increases have to be introduced by stages, in order to avoid public unrest, he added.
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| Trade and Investment
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March trade surplus hits $2.1 billion on export gains
Indonesia's trade surplus for March rose to US$2.1 billion from $1.7 billion in February, as exports recovered to $5.22 billion from $4.72 billion the month before according to the Central Bureau of Statistics (BPS). BPS deputy Kusmadi Saleh said a 21.68 percent surge in oil and gas exports helped push the country's export value to the $5 billion mark for the first time this year.
"The higher oil and gas exports are due to larger sales volume rather than improved oil prices," Kusmadi told reporters in a press meeting.
A hefty 35.67 percent increase in March's oil export contributed to a total of $1.35 billion in revenue from the oil and gas sector, which in February fell to $1.1 billion.
As for March's non-oil and gas exports, BPS added, revenue rose by 6.95 percent to $3.86 billion from $3.61 billion in the previous month.
The Jakarta Post May 3, 2001
Malaysia Guthrie CEO: Indonesia Reviewing Deal Process
KUALA LUMPUR -- The top official at Malaysian plantation concern Kumpulan Guthrie Bhd. (P.KUG) confirms that Indonesia's government is reviewing the company's acquisition of oil palm estates in that country, but insists it won't hurt the takeover.
Guthrie's Group Chief Executive Abdul Khalid Ibrahim said the company had already assumed management control of the Indonesian plantation companies on March 31, and is now working with the seller on a due diligence exercise.
"Yes, we've been told (of the review). It's a review of process, how the thing (the sale) has been conducted. That's all. It's just like an audit,"
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