CBM Asia Negotiating Indonesia Venture With Exxon Mobil

CBM Asia Development Corp. (TCF) is negotiating a possible joint venture with Exxon Mobil Corp. (XOM) on three coalbed-methane production-sharing contracts in Indonesia.

CBM Asia said it will acquire a 35 percent to 37.5 percent stake in three existing production-sharing contracts, according to a statement today. It didn’t give a value for the proposed transaction.

The company, based in Vancouver, will have the right to acquire an additional 35 percent stake, according to the statement. It will also acquire the right to farm into 50 percent of Exxon Mobil’s future participating interest in certain coalbed-methane projects.

Patrick McGinn, an Exxon Mobil spokesman, declined to comment, citing company policy on commercial discussions.

CBM Asia was unchanged at 16 cents at 9:30 a.m. in Toronto. Exxon Mobil fell 5 cents to $88.13 in New York.

To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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