Govt to speed up CBM production

Government plans to modify coal-bed methane (CBM) contracts to push contractors to start production as early as 2011.

Director General of Oil and Gas Evita Legowo said in a publication released by Ministry of Energy?s website that the new set of guidelines will also cover utilization of gas which was released during dewatering process.

?The government is considering to allow gas utilization before plan of development is signed,? Eddy Hermantoro, Upstream Director said.

Unlike conventional gas, CBM must undergo lengthy dewatering process before gas could be commercially produced. However, during the dewatering process, a small volume of gas is also produced.

Government has thus far awarded more than 10 CBM working areas in Sumatra and Kalimantan with more seen to follow. (bernard)