Ephindo to develop CBM wells in S. Sumatra

PT Energi Pasir Hitam Indonesia (Ephindo) will carry out drilling activities on five Coal Bed Methane (CBM) wells in Musi Banyuasin regency, South Sumatra as part of the company's pilot project for the development of CBM gas in the country.

Ephindo's president director Wahyudin Yudiana said in Jakarta last week that the drilling activities would be carried out next year or in 2008, while production was expected to be commenced in 2010 or in 2011.

"For the pilot project, we need to carry out drilling activities on thousands of wells. Investment is about US$400,000 per well," he was quoted as saying. According to him, the company, in cooperation with state owned oil and gas research institution Lemigas had recently completed an initial survey for the pilot project.

He said that Ephindo and other CBM developers had proposed to the government to issue more attractive production split scheme in the production of CBM.

"The production split should be better than those provided by the government on oil and gas fields in frontier areas. It means that the production split for CBM should be at least 50 percent for developers and the other 50 percent for the government," he added. (Godang)