CORRECTION: Govt identifies 7 shale gas basins in Indonesia

(Edy Hermantoro is a senior official at the Ministry of Energy and Mineral Resources, not at BPMIGAS as stated in the previoius article. The correct version is as follows)

The government has identified 7 shale gas basins in Indonesia and is preparing a regulation for the development of the new energy.

The seven basins include three in Sumatra (Baong Shale, Telisa Shale and Gumai Shale), two in Java and Kalimantan respectively. Aside from the seven basins, the government has also identified a basin in the Klasafet formation, Director General of Oil and Gas Evita Legowo said on Tuesday.

Evita said the government is drafting a regulation that will provide a legal umbrella for the development of shale gas in Indonesia.

On Feb. 23, 2011, a senior official of the Ministry of Energy and Mineral Resources said that the government expects to start a pilot project of shale gas exploration this year, which will need US$8 million in investment per well.

Director of Oil and Gas Upstream Business Development A. Edy Hermantoro said the investment would be more costly in Indonesia than in other countries which have developed the new gas resource due to difficult terrains here. In the US for example the exploration costs only $2-3 million per well.

"Our terrain is more complicated. The depth of the fields determines the investment,? Edy said.

To find shale gas deposits, he added, an operator needs to drill up to 600 meters deep, while in other countries the depth only reaches 400 meters.

The volume of gas from the well will be known one month after the drilling starts, but it takes five years to shift shale stones into gas.

Government studies have found shale gas deposits in Sumatra and Papua.

Shale gas is unconventional gas like CBM. The shale gas is expected to boost domestic gas supply in the future. (giok)