Indonesia signs 8 coal bed methane contracts withhttps://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/7499933
Indonesia signs 8 coal bed methane contracts with local companies
Jakarta (Platts)--18Apr2012/457 am EDT/857 GMT
Indonesia has signed eight coal bed methane contacts with local companies, which will generate a total of $47.4 million of investment -- $39.4 million of commitment over the first three years of the exploration period and $8 million as signing bonus -- a senior energy ministry official said Wednesday.
Three consortiums led by Pertamina Hulu Energi, a subsidiary of Indonesia's state-owned oil and gas company Pertamina, have won three CBM blocks -- Air Benakat I, Air Benakat II and Air Benakat III in South Sumatra, oil and gas director general at the energy and mines ministry Evita Legowo said.
The remaining five blocks were also awarded to local companies: Bangkanai CBM Energi, Bangkanai I block in Central Kalimantan); Borneo Metana Energi, Bangkanai II block; Bina Mandiri Energi, Kuala Kapuas II block in Kalimantan; Sanga-Sanga Energi Prima, West Sanga I block in Kalimantan; and a consortium of Batu Raja Energi and Anugrah Persada Energi, Air Komering block in South Sumatra, Legowo said.
Indonesia has signed totaling 42 CBM contracts since 2008; and the government expects the CBM blocks to produce 500,000 Mcf/day of gas by 2015, rising progressively.
CBM deposits in Indonesia could reach 453 Tcf, much higher than the natural gas deposits, which are estimated to reach about 190 Tcf. Sumatra and East Kalimantan are two major coal producing areas in the country.
--Anita Nugraha, newsdesk@platts.com