Govt targets to sign first shale gas contract this year

The government expects to ink its signature on the nation?s first shale gas contract this year, and have at least 30 contracts by 2015.

?It is expected that by 2015, we?ll have many (shale gas) contracts. About 30,? said Evita H. Legowo, Director General of Oil and Gas at the Energy and Mineral Resources Ministry, over the weekend.

Evita is optimistic over the target, considering great interest from investors in the development of shale gas industry. She pointed out as example that the Ministry has so far received a total of 37 joint study requests, four of which have already been approved.

The four companies are PT Pertamina, consortium of Pacific Oil & Gas Indonesia and Bukit Energy, consortium of Central Sumatra Energy & Indrillco Bakti, and PT MIT Ivel Geoscience-Central Sumatera Energy.

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