EMP?s units get two CBM blocks

IDX-listed energy firm PT Energi Mega Persada Tbk said on Tuesday that the government had awarded two contracts for its subsidiaries to develop coal bed methane (CBM) resources in Kalimantan.

PT Artha Widya Persada, which is 70% owned by EMP, was awarded with the Tabulako Block in South Kalimantan.

Meanwhile, PT Visi Multi Artha, a 70% owned subsdiary of EMP, in partnership with PT Pertamina Hulu Energi Metana Kalimantan B, a subsidiary of state owned oil and gas firm PT Pertamina received the contract to develop the Sangatta-2 block in East Kalimantan. Visi Multi Artha has 60% stake in the Sangatta-2 block, while the remainder is held by the Pertamina subsidiary.

Coal mining giant PT Bumi Resources has 30 percent stake in each Artha Widya Persada and Visi Multi Artha.

The government will get signature bonuses of US$1.5 million for Sangatta-2 Block and $1 million for Tabulako Block from the recepients of the contracts. Under the 30 years contracts, the contractors are committed to carrying out exploration for six years.

Preliminary studies indicate both blocks have combined contingent resources of over 1.5 trillion cubic feet of gas.

CBM is natural gas contained in coal, dominated by methane (CH-4). (bernard)