Government signs four CBM working areas
Thursday, November 13 2008 - 03:42 AM WIB
PT Indobarambai Gas Methan and PT Barito Basin Gas were each awarded a concession in South Kalimantan.
A consortium called Kutai West CBM Inc. ? Newton Energy Capital Limited was awarded four coal concession areas and one oil and gas working area in East Kalimantan. Another consortium called PT Pertamina Hulu Energi Metana Kalimantan A-Sangatta West CBM Inc. was awarded the oil and gas working area of PT Pertamina EP?s Sangatta Block also in East Kalimantan.
The contracts are valid for 30 years.
The companies have expressed investment commitments for the first three years of exploration period including a US$650,000 geological study, $11.13 million drilling work at 13 exploration wells, $ 3.64 million for 14 coring, $900 thousand for pilot project phase I (dewatering and production test), making total investment to reach $16.31 million. In addition, the government will receive a signature bonus worth $4 million. (godang/bernard)
| No | Working Area | Location | Contractor(s) | Investment Commitment (US$ million) | Signature Bonus (US$ million) |
| 1 | Barito Banjar I | South Kalimantan | PT Indobarambai Gas Methan | 3 | 1 |
| 2 | Barito Banjar II | South Kalimantan | PT Barito Basin Gas | 3 | 1 |
| 3 | Kutai | East Kalimantan | Consortium Kutai West CBM Inc.-Newton Energy Capital Limited | 6.6 | `1 |
| 4 | Sangatta I | East Kalimantan | Consortium PT Pertamina Hulu Energi Metana Kalimantan A-Sangatta West CBM Inc. | 7.7 | 1 |