Govt awarding 8 CBM working areas

By Godang Sitompul

The government is scheduled to award eight coal bed methane (CBM) working areas (WKs) to a number of companies in Jakarta today, the Energy and Mineral Resources Ministry said.

The award ceremony will be attended by Energy and Mineral Resources Minister Jero Wacik and Head of BPMIGAS R. Priyono.

Among CBM blocks that are to be awarded are Bangkanai 1, which would be awarded to PT Bangkanai CBM Energi, Bangkanai 2 to PT Borneo Metana Energi and Kuala Kapuas 2 to PT Bina Mandiri Energi.

The CBM working areas are awarded through direct offer and joint study mechanism.

The government targets the CBM projects would produce gas at 500 million standard cubic feet per day (mmscfd) and to further increase to 1,000 mmscfd in 2020 and 1,500 mmscfd in 2025.

The government estimates Indonesia?s CBM resources to reach 453.3 trillion cubic feet (tcf), spread in 11 basins. They are classified as 112.47 tcf proven reserves and 57.60 tcf potential resources.

Editing by Roffie Kurniawan