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NEWS UPDATES 5 October 2009

Indonesia: Sumatra's commodities and energy unaffected by quake

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The Indonesian island of Sumatra, home to some of the country's largest oilfields as well as its oldest liquefied natural gas terminal, has been unaffected by the powerful 7.6 magnitude earthquake that hit the region last week, reported Reuters.

Sumatra is a major producer of coffee, rubber and palm oil, and is home to two key ports for commodity exports - Belawan port in North Sumatra and Dumai in Riau. It also accounts for about 6 percent of coal output from Indonesia, the world's top thermal coal exporter.

The earthquake has disrupted shipments of rubber from West Sumatra, but shipments and production of coal, oil and gas, coffee and palm oil, appear unaffected so far.

About 50,000 tonnes of rubber for shipment in October and November from West Sumatra, Indonesia's fifth-largest rubber-producing region, was likely to be delayed for up to two weeks, Indonesia's Rubber Association said.  But rubber production and shipment in South Sumatra and North Sumatra-- the country's first and second largest producers respectively - were unaffected.

Operations at Petrochina's O857.HK Indonesian unit, which operates the Jabung oil and gas block in Jambi Sumatra, Exxon Mobil's (XOM.N) Arun LNG plant in Aceh, and Chevron's (CVX.N) main gas fields in Sumatra island, were not hit by the quake either.

Operation at Ombilin mine, operated by state miner PT Tambang Batubara Bukit Asam (PTBA.JK), were running normally, while coal shipments from the company's main mine in South Sumatra's Tanjung Enim were not affected by the quake.


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