JAKARTA (Indonesia Today) – The government expects up to seven CBM blocks to start producing by end of 2012. Currently, there are four producing CBM blocks including Sanga-Sanga, Sangatta, and Sekayu.
Evita Legowo, Director General of Oil & Gas, says Indonesian Government has decided higher price for CBM gas compared to the conventional ones, because of a more expensive cost for CBM development.
As of August 2012, there were 50 CBM Working Areas and the government targets to add five or six more awards in Sumatera and Kalimantan. The government also targets 210 CBM Working Areas by 2025, or 15 awards per annum.
Indonesian CBMs are mostly located in the basins of South Sumatera (183 TCF), Barito (101.6 TCF), Kutai (89.4 TCF), and Central Sumatera (52.5 TCF) for high prospective category, while North Tarakan (17.5 TCF), Berau (8.4 TCF), and Ombilin (0.5 TCF) are in medium category, and Sulawesi (2.0 TCF) and Bengkulu (3.6 TCF) are in low category.
One major CBM player in Indonesia, Dart Energy Ltd, said earlier that it will kick off commercial production from Sangatta West, East Kalimantan by end of this year. The joint venture company held by Dart Energy (50%) and Ephindo (50%) received approval from Ministry of Energy & Mineral Resources for the pilot to power gas price of US$7.90 per mmbtu. Four wells will supply gas for electricity to local Sangatta Township.