Indonesia expected to begin CBM production in 2011

The government is optimistic that some of coal-bed methane (CBM) blocks offered to investors last year will be able to begin production within the next two years or in 2011, marking the country?s first CBM gas production.

?With the use of the latest technology, I am quite optimistic that CBM gas could be found in some of the CBM working areas already offered to investors,? the director general of oil and gas at the Ministry of Energy and Mineral Resources Evita H. Legowo said in a report posted by the ministry?s website.

PT Ephindo which operated two CBM blocks Musi Banyuasin block in South Sumatera and sangatta I block in East Kalimantan would be able to strike the CBM gas within the next two years, Evita said.

Up to now, the government has awarded seven contracts for the exploration and development of the CBM. The government expects to sign four more contracts in May. (godang)