Medco, Lemigas to develop coal bed methane resources in S. Sumatra

Medco Exploration and Production Indonesia, a subsidiary of JSX listed oil and gas firm PT Medco Energi Internasional Tbk, on Monday signed an agreement with state oil and gas research center LEMIGAS to jointly develop coal bed methane (CBM) resources in South Sumatra.

Under the 5-year agreement, the parties will conduct drilling exploration program of five CBM wells in the first of three years.

CBM is methane gas found in the cracks of coal deposits. According to LEMIGAS, around 453 trillion cubic feet of CBM resource potential are identified in Sumatra and Kalimantan Basins. (alex)