Govt to award first CBM exploration right this month

Government is set to award coal-bed methane (CBM) exploration right to Medco-Ephindo consortium this month, the first of its kind in Indonesia, a government official said.

Dircetor General of Oil and Gas Luluk Sumiraso told reporters on Friday that the consortium will explore for CBM in Medco Energi?s working area in Musi Banyuasin, South Sumatra.

Luluk said the consortium will receive split of 45 percent with government will get the remaining balance. Under Indonesian regulation, CBM exploration and exploitation follows Oil and Gas Law.

He further added that government might further award three separate blocks in South Sumatra to Pertamina-led consortiums. ?We?re still evaluating the proposals,? he said, adding that Pertamina will separately work with Shell and state coal mining firm PTBA and another undisclosed coal miner to explore each area. (godang/bernard)