Arrow teams up with PTBA and Pertamina in CBM project in South Sumatra

PT Tambang Batubara Bukit Asam (PTBA) and PT Pertamina is setting up a joint venture with PT Arrow Energi Indonesia, a subsidiary of Australian firm Arrow Energy Limited, to develop coal bed methane resources in Tanjung Enim, South Sumatra.

PTBA, through its subsidiary PT Bukit Asam Metana Enim, will get 27.5 percent in the joint venture, Pertamina, through PT Pertamina EP Mitra Enim 27.5 percent and Arrow 45 percent. They will operate PTBA?s coal mine in Tanjung Enim.,

?Preparations for drilling are underway. The exploration is expected to last two or three years. Pertamina and PTBA will not put any money in the venture since all costs will be covered by Arrow,? PTBA?s President Director Sukrisno said on Tuesday, without providing details about the terms of the joint venture. (Godang)