CBM exploration should be based on existing oil and gas law: Purnomo

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has made it clear that the exploration and production of Coal Bed Methane (CBM) should be based on the existing gas and oil law.

Speaking in Jakarta on Tuesday, Purnomo said that like oil and gas, the production sharing scheme for the development of CBM field is determined in according to their locations.

For the development of CBM fields located in frontier areas, the production sharing split can reach 35 percent for developers and 65 percent for the government, while those located in non-frontier or developed areas, the production split is 15 percent for developers and 85 percent for the government.

CBM developers have proposed to the government to issue more attractive production split scheme in the production of CBM so as to encourage more investors to involve in the exploration of CBM deposits which are widely found in many areas particularly in Sumatra, Kalimantan and Sulawesi.

According to the Ministry of Energy and Mineral Resources, CBM deposits in the country can reach 453 trillion cubic feet, much higher than the natural gas deposits which are estimated to reach 190 trillion cubic feet. (*)