Govt says CBM regulation 80% completed
Friday, December 18 2009 - 05:10 AM WIB
Ministry of Energy and Mineral Resources has 80% completed the drafting of regulation which will serve as guideline to develop coal-bed methane (CBM) and the regulation is expected to be issued soon as part of the new cabinet?s 100-day program.
The regulation will among other, give guidelines on utilization of gas that are produced during dewatering period. Contractors will be offered 45 percent split for gas production during dewatering period, Ministry?s Upstream Director Eddy Hermantoro was quoted by the Ministry?s website as saying.
Eddy said the new regulation will be applied retroactively to the 20 CBM contracts that have been signed.
Eddy hoped with the new regulation at least five contractors could start gas production in 2011.(alex)