Govt to offer 8 CBM blocks

The Energy and Mineral Resources Ministry will again offer eight coal bed methane (CBM) blocks for exploration as part of the government?s program to increase gas production from unconventional gas fields.

Director General of Oil and Gas at the Energy and Mineral Resources Ministry, Evita Legowo, said in Jakarta on Thursday that five of the CBM blocks would be offered through a direct offer mechanism, and the other three CBM fields through a regular tender.

The five CBM blocks which will be offered through a direct offer mechanism include: CBM Bontang Bengalon, CBM Belawa, CBM Barito, CBM Sekayu II, CBM Kuala Kapuas I, while those to be offered though a regular tender are CBM Air Ogan I, CBM Air Ogan II and CBM Melak-Mendung II.

For the direct offer mechanism, tender documents can be obtained between June 4 and July 18. Clarification forum will be held between July 11 ? 17 and tender documents should be submitted on July 19, 2012

Meanwhile, for the regular tender, documents can be obtained beginning June 4. The bidding documents should be submitted on Sept, 28.

The government has so far awarded 50 CBM working areas for exploration, and three of them have begun production including the Sanga-sanga block with a capacity of 0.5 MMSCFD, the Sangatta block with a capacity of 0.5 MMSCFD and the Sekayu block with a capacity of 0.2 MMSCFD. Gas from the three blocks are used to generate electricity for the people in the surrounding areas.

Editing by Benget Besalicto Tnb.