Jakarta-wapresri.go.id On Thursday (April 6), Vice President Jusuf Kalla received Senior Vice President of Exxon Mobile Mark W. Albers in his office in Jakarta.

During the meeting, Albers expressed his appreciation to the Government of Indonesia for its support in creating favorable investment climate in the country.

Albers then explained the development of Exxon Mobil’s operations and investment plans in Indonesia.

Exxon Mobil’s project in Banyu Urip, Cepu, said Albers, is now getting cheaper in terms of production costs. In fact, he continued, reserves and production in the area continues to increase.

“With the increase in production in our site in Cepu, we have helped Indonesia meet or even exceed the target of lifting for the first time in the last decade. Last year, our production reached 170 thousand barrels per day and is targeted to increase up to 209 thousand barrels per day. Without government support, for example on handling local issues, this would be very difficult to achieve. This is a good example to the world on the stability of investment climate in Indonesia,” said Albers.

Another positive development, he continued, is the process of discussion of the company’s cost recovery with the Ministry of Energy and Mineral Resources that runs with good progress.

“We are optimistic to resolve this issue with a good solution,” said Erwin Maryoto, Vice President of Public and Government Affairs at Exxon Mobil Indonesia accompanying Albers in the meeting together with President of Exxon Mobil Indonesia Daniel Wieczynski.

On the occasion, Albers also complained of investment management in the East Natuna gas that is very costly and technically complicated because it contains 75% of CO2.

“To that end, Exxon has built cooperation with the state energy firm Pertamina to discover new technologies and other breakthroughs to reduce the high production costs,” he said.

In response, the Vice President appreciated Exxon Mobil that has made efficiency by reducing its cost of production in Cepu to around US$ 2.5 per barrel.

The Vice President in the meeting also encouraged gross split as production sharing cost (PSC) scheme that gives the ease and certainty and avoids conflicts that often occur in the cost recovery scheme. As is known, the government has recently established a gross split policy to substitute cost recovery scheme previously applied.

At the end of the meeting, Albers told the Vice President that Exxon is currently exploring sales agreement of LNG resulted from its operations centers in different countries with Pertamina.

“It is expected that both parties could come into agreement and the contract signing can be done during Vice President Mike Pence’s visit to Indonesia later this month,” he said.