Govt plans new regulation on CBM
Thursday, March 19 2015 - 12:53 AM WIB
The government has awarded 54 contracts to develop the new energy since the past decade but thus far the amount of CBM that has been produced is very small ? between 0.5-06 mmscfd. This compares to the nation?s huge CBM resources which are estimated at 453 tcf, the ministry said in a statement on Wednesday.
Acting Director General of Oil and Gas IGN Wiratmaja said the existing regulation on CBM is considered unsuitable for CBM industry because it was derived from the regulation on conventional gas, which is different from unconventional gas such as CBM. The regulation on conventional gas is characterized among others by its tight requirements.
Wiratmaja noted that CBM drilling does not need to go as deep as conventional drilling as the well?s pressure is lower compared to that of conventional well. At present, CBM drilling in Indonesia may cost between US$1.2 million to $1.5 million per well, while in Australia, the cost is around $600,000.
?We hope the drilling cost may drop to between $600,000 to $800,000 (per well) thanks to the new regulation. The drafting is targeted to be completed this year,? he said.
The government also plans to write a specific regulation on shale gas but thus far there isn?t yet any discussion to detail the plan, he said.
Editing by Johannes Simbolon