Govt awards 8 CBM blocks
Wednesday, April 18 2012 - 08:42 AM WIB
The government awarded on Wednesday eight contracts to explore and develop coal bed methane (CBM) in various parts of the country.
Among the recipients of the contracts is PT Pertamina Hulu Energi (PHE), the subsidiary of state owned oil and gas company PT Pertmaina, which is known to be aggressively seeking to tap the country?s CBM resources. The company in consortium with three local companies was awarded three blocks.
The eight contracts were signed on the sidelines of the IndoCBm 2012 conference and exhibition in Jakarta, attended among others by Minister of Energy and Mineral Resources (ESDM) Jero Wacik and upstream authority BPMIGAS? Chairman R. Priyono.
Director General of Oil and Gas at ESDM Evita Herawati Legowo projected the blocks would come onstream in 2015. ?CBM is different from conventional gas. Conventional gas can only be exploited after exploration has been completed. Meanwhile, CBM can be exploited while exploration and dewatering process is still in progress,? Evita explained.
The eight companies and consortiums are committed to spending a total of US$39.4 million, including $5.35 for G&G activities, $14.6 million for 18 core hole activities, $3 million for exploration well drillings.
The government receives signature bonus of $8 million from the CBM working areas contract signing.
The government has targeted the country?s CBM projects to produce 1,000 mmscfd of gas in 2020 and 1,500 mmscfd in 2025.
The government estimates the country?s CBM resources at 453.3 trillion cubic feet (tcf), spread in 11 basins. They are classified as 112.47 tcf of proven reserves and 57.60 tcf of potential resources.
All the blocks were offered by the government in 2011. Four of them were offered through a direct offer mechanism, namely GMB Bangkanai I, GMB Bangkanai II, GMB Kuala Kapuas II, and GMB West Sanga Sanga I.
| No | Block | Contractor (s) | Commitment | Activities | Budget (US$ million ) |
|
1 |
GBM Bangkanai I | PT. Bangkanai CBM Persada | G & G Study | 0.6 | |
| Core hole | 2.0 | ||||
| Exploration Well | 2.5 | ||||
| Pilot Project Phase I
- Production test (convert) |
0.5 | ||||
| Total | 5.6 | ||||
| Bonus | |||||
| Signature Bonus | 1.0 | ||||
| Equipment & Service | 0.1 | ||||
| Production Bonus | |||||
| - 250 BCF | 0.25 | ||||
| - 500 BCF | 0.5 | ||||
| - 1000 BCF | 0.75 | ||||
|
2 |
GMB Bangkanai II | PT. Borneo Metana Energi | G & G Study | 0.6 | |
| Core hole | 2.0 | ||||
| Exploration Well | 2.5 | ||||
| Pilot Project Phase I
- Production test (convert) |
0.5 | ||||
| Total | 5.6 | ||||
| Bonus | |||||
| Signature Bonus | 1.0 | ||||
| Equipment & Service | 0.1 | ||||
| Production Bonus | |||||
| - 250 BCF | 0.25 | ||||
| - 500 BCF | 0.5 | ||||
| - 1000 BCF | 0.75 | ||||
|
3 |
GMB Kuala Kapuas II | PT. Bina Mandiri Energi | G & G Study | 0.5 | |
| Core hole | 0.8 | ||||
| Exploration Well | 1.3 | ||||
| Pilot Project Phase I
- Production test (convert) |
0.7 | ||||
| Total | 3.3 | ||||
| Bonus | |||||
| Signature Bonus | 1.0 | ||||
| Equipment & Service | 0.075 | ||||
| Production Bonus | |||||
| - 250 BCF | 0.25 | ||||
| - 500 BCF | 0.5 | ||||
| - 1000 BCF | 0.75 | ||||
|
4 |
GMB West Sanga-sanga I | PT. Sanga-sanga Energi Prima | G & G Study | 0.6 | |
| Core hole | 2.0 | ||||
| Exploration Well | 1.25 | ||||
| Pilot Project Phase I
- Production test (convert) |
0.5 | ||||
| Total | 4.35 | ||||
| Bonus | |||||
| Signature Bonus | 1.0 | ||||
| Equipment & Service | 0.1 | ||||
| Production Bonus | |||||
| - 250 BCF | 0.25 | ||||
| - 500 BCF | 0.5 | ||||
| - 1000 BCF | 0.75 | ||||
Four others were also offered through direct offer mechanism, but are located in the overlapping areas of oil and gas and coal contracts. They are GMB Air Komaring, GMB Benakat I, GMB Benakat II, and GMB Benakat III.
| No | Block | Contractor (s) | Commitment | Activities | Budget (US$ million ) |
| 1 | GMB Air Komering | Konsorsium PT Batu Raja Energi - PT Anugrah Persada Energi | G & G Study | ? | 0.8 |
| ? | ? | ? | Core hole | ? | 3.0 |
| ? | ? | ? | Exploration Well | ? | 1.0 |
| ? | ? | ? | Pilot Project Phase I
- Production test (convert) |
? | 1.2 |
| ? | ? | ? | Total | ? | 6.0 |
| ? | ? | ? | Bonus | ? | ? |
| ? | ? | ? | Signature Bonus | ? | 1.0 |
| ? | ? | ? | Equipment & Service | ? | 0.1 |
| ? | ? | ? | Production Bonus | ? | ? |
| ? | ? | ? | - 250 BCF | ? | 0.5 |
| ? | ? | ? | - 500 BCF | ? | 0.75 |
| ? | ? | ? | - 1000 BCF | ? | 1.0 |
| 2 | GMB Air Benakat I | Konsorsium PT Pertamina Hulu Energi Metana Sumatera 3 (PHE METRA 3) dan PT Petrobara Sentosa | G & G Study | 0.75 | |
| Core hole | 1.6 | ||||
| Exploration Well | 2.5 | ||||
| Pilot Project Phase I
- Production test (convert) |
|||||
| Total | 4.85 | ||||
| Bonus | |||||
| Signature Bonus | 1.0 | ||||
| Equipment & Service | 0.1 | ||||
| Production Bonus | |||||
| - 250 BCF | 0.5 | ||||
| - 500 BCF | 0.75 | ||||
| - 1000 BCF | 1.0 | ||||
3 |
GMB Air Benakat II | Konsorsium PT Pertamina Hulu Energi Metana Sumatera 6 (PHE METRA 6) dan PT Prima Gas Sejahtera | G & G Study | 0.75 | |
| Core hole | 1.6 | ||||
| Exploration Well | 2.5 | ||||
| Pilot Project Phase I
- Production test (convert) |
|||||
| Total | 4.85 | ||||
| Bonus | |||||
| Signature Bonus | 1.0 | ||||
| Equipment & Service | 0.1 | ||||
| Production Bonus | |||||
| - 250 BCF | 0.5 | ||||
| - 500 BCF | 0.75 | ||||
| - 1000 BCF | 1.0 | ||||
| 4 | GMB Air Benakat III |
Konsorsium PT Pertamina Hulu Energi Metana Sumatera 7 (PHE METRA 7) dan PT Unigas Geosinklinal Makmur | G & G Study | 0.75 | |
| Core hole | 1.6 | ||||
| Exploration Well | 2.5 | ||||
| Pilot Project Phase I
- Production test (convert) |
|||||
| Total | 4.85 | ||||
| Bonus | |||||
| Signature Bonus | 1.0 | ||||
| Equipment & Service | 0.1 | ||||
| Production Bonus | |||||
| - 250 BCF | 0.5 | ||||
| - 500 BCF | 0.75 | ||||
| - 1000 BCF | 1.0 |
Editing by Johannes Simbolon