Indonesia to Tender CBM Areas
BP Migas, Indonesia's upstream regulator, said that the Indonesian government plans to tender six coal bed methane (CBM) areas in April or May. The six areas are in South Sumatra and East Kalimantan, which hold subtantial coal reserves, Energy Ministry's Upstream Oil and Gas Director R Priyono said, as reported by the media.
"The six areas include those part of coal mine concessions, oil and gas, and areas that haven't been awarded yet (open areas)," Priyono said. Priyono said further that the government will give the first priority to companies that operate the coal concession or oil and gas areas which will be tendered out. If they aren't interested in the area, the government will hold an open tender.
Priyono said that according Regulation of The Minister of Energy and Mineral Resources number 033 of 2006 on Business Undertaking of Coalbed Methane, the CBM development will follow regulations on natural gas, and not coal. However, thus far the investors that are interested in developing CBM want a better split than in gas.
"Split for gas is 70 percent for the government and 30 percent for the company. In CBM, they want to get a bigger portion of revenue as it is an alternative energy," he said. Several companies including Pertamina, PGN and Shell have said that they want to develop CBM. The potential of the fuel in Indonesia is estimated at 453.3 trillion cubic feet (TCF).
Operates 27 Offshore Rigs
- Shell Looks Beyond Road Fuels to Secure Future of Refining (Nov 06)
- API Panel Member: Voluntary Methane Program Forthcoming (Oct 06)
- Eni Bets Big on Zohr Explorer Finding New Treasure (Oct 06)
Company: Pertamina more info
- Pertamina Signs JV Deal With Russia's Rosneft For New Tuban Refinery (Nov 28)
- Indonesia's Pertamina To Spend $700MM On Mahakam Oil, Gas Block Next Year (Nov 02)
- Pertamina: Indonesia To Become LNG Importer In 2020 As Population Grows (Oct 25)
Company: BP Migas more info
- Indonesia Greenlights BP's $12.1B LNG Proj. at Tangguh (Nov 02)
- Gas Deliveries from Ruby Field Offshore Indonesia to Start Late September (Sep 07)
- Indonesian Regulator Approves 12 O&G Development Plans (Aug 13)
Company: PGN more info
- First Production Flows at Bukit Tua Field in Ketapang Block Off East Java (May 22)
- Kontan: PGN to Invest $500M on FSRU, Pipeline Projects (Sep 05)
- PGN FSRU Project Commences Commercial Operations Offshore Sumatra (Jul 29)