CBM Asia sign HoA to acquire Kalimantan CBM PSC
Wednesday, January 25 2012 - 08:31 PM WIB
Canadian firm CBM Asia Development Corp. announced Wednesday that it has signed a Heads of Agreement (HoA) with PT Tranaco Utama, a private Indonesian company that holds the first rights to undertake a production sharing contract (PSC) for a 1,500 square kilometre coalbed methane (CBM) block in Kalimantan, Indonesia.
Under the HoA, CBM Asia has the right to acquire 80% participation interest in the proposed coalbed methane PSC and be appointed operator (with Tranaco to hold the remaining 20% participation interest) in consideration for reimbursing Tranaco?s sunk costs and paying any signing bonus to the Indonesian government upon the award of a PSC.
On January 18, 2012, CBM Asia and Tranaco submitted a proposal to the Director General of Oil and Gas to approve the award of a coalbed methane PSC through the Direct Offer Mechanism under Ministerial Regulation of the Department of Energy and Mineral Resources. The proposal is based on a Joint Evaluation Study undertaken by Tranaco in 2011.
?This Agreement represents the advancement of our business strategy to materially expand our land position in Indonesia where, in 2011, we acquired a 70% participating interest and operatorship in the Bentian Besar CBM PSC and the Hulu CBM PSC,? commented Alan T. Charuk, CBM Asia?s CEO and President, ?There are a number of coalbed methane PSCs in proximity to the block area operated by Exxon Mobil and BP.?
Editing By David Mustakim