Govt to tender working area of CBM
Monday, January 15 2007 - 01:08 AM WIB
R. Priyono, director for upstream business development of the Directorate of Oil and Gas of the Energy and Mineral Resources, said in Jakarta over the weekend that an intensive study now underway on the working area as well on the adequate amount of split for parties involved in managing CBM in Indonesia. ?Hopefully, the working area of CBM in South Kalimantan and South Sumatra can be tendered in March,? he said.
According to Priyono, CBM and oil and gas are different in terms of business model because the area of CBM is usually located in an area where coal is developed by a company that receives a mining authority from a regent.
?So, it is not just a tender but it should also take aspirations from local administration into account to ensure that the project can work,? he said.
On the split of CBM development, he said that the split will refer to CBM development in Australia or other countries that develop that similar potential.
?In Australia, CBM split for an investor is one third of the gas produced. This is similar to split for gas development in Indonesia, which is set at 60 percent for the country/the government and 40 percent for investors,? he said.
Recently, The Research and Development Division of the Energy and Mineral Resources Ministry has taken an initiative to develop CBM by teaming up with Japan?s Sojitz Corp.
CBM potential in Indonesia reaches 400-500 trillion cubic feet/ TCF. (*)