Govt to offer 8 shale gas tenements

The Ministry of Energy and Mineral Resources plans to offer eight shale gas working areas this year, comprising five offered through direct offer or joint study mechanisms and three through regular tender mechanism.

The five working areas offered through direct offer or joint study mechanisms are MNK Sakakemang Deep, MNK Bengkalis Deep, MNK Jambi Deept, MNK Blora Deep and MNK Palmerah Deep. The working areas offered through regular tender mechanism are MNK Shinta, MNK North Tarakan and MNK Kutai, the Directorate General of Oil and Gas said in a statement on Friday.

The shale gas blocks will be offered during the incoming Indonesian Petroleum Association (IPA) 38th convention.

The first shale gas contract, awarded to state owned oil and gas firm PT Pertamina, was signed during the IPA 37th convention last year.

Shale gas potential resources in Indonesia are estimated to reach 574 tcf, larger than coal bed methane (CBM) which are estimated at 453.3 tcf, and conventional gas resources which are estimated at 153 tcf.

The shale gas is concentrated in Sumatra, Kalimantan, Java and Papua, according to the statement.

Editing by Johannes Simbolon