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Mobil Announces Startup of Gas Operations from North Sumatra Offshore Platform

13 July 1999

Mobil Announces Startup of Gas Operations from North Sumatra Offshore Platform

    FAIRFAX, Va.--July 12, 1999--Mobil Corporation announced today that its wholly-owned affiliate, Mobil Exploration Indonesia, Inc. (MEI), has started production of natural gas from the North Sumatra Offshore (NSO) "A" Field, offshore northern Sumatra. MEI is a production sharing contractor to Pertamina, the Indonesian state oil company. MEI holds a 100% working interest in the NSO Block, which was awarded to Mobil in 1968.
    NSO production will supplement gas production from the Arun Field in order to maintain existing liquefied natural gas (LNG) sales from the Arun LNG plant. Once up to capacity, the field will produce at approximately 450 million cubic feet per day. The Arun LNG plant, which is owned by Pertamina, is expected to produce over 11 million tons of LNG this year, comparable to 1998.
    "We are proud of the outstanding accomplishment of completing this technically challenging project on time and within budget," said Ron Wilson, President, Mobil Oil Indonesia (MOI). "The efforts and coordination of our people, Pertamina and our contractors were essential to this success."
    The NSO gas field, which was discovered in 1972, is located approximately 63 miles northeast of the Arun LNG Plant in approximately 350 feet of water. The 7,000-ton production platform supports production from nine producing wells and field production facilities to cool and dehydrate the gas produced. A 63-mile-long subsea pipeline links the platform to onshore treating, compression and sulfur recovery facilities that were installed at the Arun LNG Plant site.
    "The successful completion of the NSO development combined with bringing on the Pase-A field late last year and technological improvements at the Arun Field offer attractive opportunities to optimize production and enhance deliverability rates from Mobil's fields in northern Sumatra," said Bill Scoggins, President, Mobil International Exploration and Producing. "And with our recent acquisition of a 50% interest in the nearby "A" Block PSC, plus our discoveries offshore East Kalimantan, Mobil is well positioned to continue as a major producer in Indonesia."
    Mobil affiliates, under contractor agreements with Pertamina, have working interests in twelve blocks in Indonesia. In 1998, Mobil celebrated 100 years doing business in Indonesia, 30 years as a Production Sharing Contractor, 20 years as a producer of Liquefied Natural Gas (from the giant Arun natural gas field and other fields in Aceh province, north Sumatra) and 10 years as a producer of Liquefied Petroleum Gas.