0 ExxonMobil Chief Not Fired: Regulator

Indonesia’s temporary oil and gas regulator has played down reports it sought to fire the head of ExxonMobil Indonesia last week, claiming that instead his contract to lead the company was not renewed. Hadi Prasetyo, head of public relations at the regulator known as SKMigas, said in a statement on Monday that recent media reports over the government’s supposed sacking of Richard Owen were false. 

“There was never [any talk of] firing the president and general manager of ExxonMobil Indonesia. What happen is the government, in this case SKMigas, did not extend the tenure of the ExxonMobil Indonesia president director, which will expire,” he added. Hadi said the decision not to extend the tenure of top staff at oil contractors like ExxonMobil Indonesia was the prerogative of the government and must be honored by oil firms. 

“It must be known that there was no firing. That such a thing could hamper the investment climate in the oil and gas industry in Indonesia is not true, as the regulation regarding working tenure has been widely understood by oil companies for a very long time,” he added. Hadi said the decision not to extend the tenure of ExxonMobil Indonesia’s general manager was an example of the government exerting its sovereignty through SKMigas, which assumed its regulatory functions after the law establishing the previous regulator was crippled by a court ruling. 

He added that he expected the public would understand the decision. “We are hoping that the situation will be clarified with this explanation so all related parties and stakeholders in the oil and gas industry can keep the positive investment climate and make it better.” The decision not to extend Owen’s tenure was reportedly made after ExxonMobil abruptly canceled its plan to off-load assets in Sumatra, including the Arun field and the North Sumatra offshore field. 

According to company data, as of 2010, those assets produced about 215 million standard cubic feet of gas per day. Several investors expressed interest in the assets, including state gas distributor Perusahaan Gas Negara, but ExxonMobil reportedly recently nixed the sale plan. The news prompted Rudi Rubiandini, the deputy minister for energy and mineral resources, to publicly criticize Owen. “His performance was not in the best interest of the nation. So he should be replaced,” the government official said.

source : the jakarta globe