Arrow, Pertamina in CBM venture
Monday, October 1 2007 - 12:25 AM WIB
Australian firm Arrow Energy N.L. announced Monday it had signed two agreements with state oil, gas company Pertamina to jointly evaluate and review prospective CBM blocks leading to potential joint venture between the two companies.
The first agreement is a MoU covering joint co-operation throughout Indonesia and the second is a Heads of Agreement for technical and commercial evaluation of CBM development in the Tanjung -1 PSC, currently held by Pertamina.
“Both agreements focus on the joint technical work and cost sharing mechanisms leading up to joint application for CBM PSC’s,” the company said.
The Indonesian Government intends that preference for the award of CBM PSC’s will be given to the holder of the underlying oil and gas PSC – of which Pertamina has a substantial portfolio.
The Tanjung PSC is located in South Kalimantan and has an area of approximately 6,500 km2 within the eastern Barito Basin, containing Miocene age coal seams of typically sub-bituminous rank, occurring in multiple seams.(alex)