AAF to send home 800 workers

Ammonia, Urea, and hydrogen peroxide producer PT Asean Aceh Fertilizer (AAF) will temporarily lay off 800 workers due to natural gas unavailability for almost two years already. The decision is expected to be taken in a shareholders meeting scheduled July 16.
AAF president director Rauf Purnama said the company's future is very much rely on newly developed gas fields in Block A, off Malacca Strait.
"But we have to wait two more years to get gas supply from these fields," he said yesterday after a meeting with Indonesian vice president Jusuf Kalla as quoted by Kompas today.

AAF shareholders are Indonesian government with 60%, while Malaysia, Philippines, and Thailand governments with 13% respectively, and Singapore with 1%. AAF started its ammonia and urea production in early 1970s, while its hydrogen peroxide plant went on stream just few years ago.

AAF needs average of 60 MMSCFD of natural gas supply that previously supplied by PT Exxon Mobil Oil Indonesia (EMOI) Inc. But EMOI itself is struggling to fulfil its LNG export contract to Japanese customers.