Govt approves 4 proposals to carry out shale gas joint study

By Godang Sitompul

The government has approved the plan of four consortium firms to conduct joint study for finding shale gas potentials in Sumatera area, the Energy and Mineral Resources Ministry said.

Director General for Oil and Gas at the Energy and Mineral Resources, Evita Legowo, said that so far 37 companies have submitted proposals to carry out joint study. Of those, four joint study proposals have been approved.

Since shale gas exploration is new in Indonesia, the government will award the contracts through direct offer mechanism, not through opened tender.

The four companies whose proposals have been approved are:
- PT Pertamina which will carry out joint study in northern Sumatera
- Consortium of Pacific Oil & Gas Indonesia and Bukit Energy in northern Sumatera
- Consortium of Central Sumatra Energy & Indrillco Bakti in central Sumatera
- PT MIT Ivel Geoscience-Central Sumatera Energy in Central Sumatera.

To support the development of unconventional gas such as CBM and shale gas, the government has issued Ministerial Decree no. 5, 2012 on the procedures of awarding non-conventional gas. The ministerial decree governs the exploration and exploitation of non-conventional gas in the country.

Under the regulation, non-conventional oil and gas working areas are awarded by Director General for Oil and Gas through regular tender or direct offer.

Editing by Roffie Kurniawan