Medco to team up with KOGAS in developing CBM

By Godang Sitompul

Listed oil and gas company PT Medco Energi Internasional Tbk plans to team up with Korea Gas Corporation (KOGAS) in developing coal bed methane (CBM) at its working areas.

KOGAS and Medco will sign an agreement in February, with a focus on developing CBM in South Sumatera,? an industry source who declined to be named told Petromindo.com.

The source said KOGAS has committed to invest in developing CBM projects in Indonesia in collaboration with Medco. However, it is not clear yet how much KOGAS is willing to invest in CBM sector in Indonesia.

Currently, Medco develops a number of CBM working areas, including Sekayu block and Lematang block, in which Medco acts as operator. In addition, Medco also has stakes in Muralim block in South Sumatera in partnership with Dart Energy.

Indonesia is among the top five countries in the world that has huge CBM potential, total of which is estimated at 453.3 trillion cubic feet (tcf), spreading in 11 basins. In South Sumatera, the total CBM potential is estimated to reach 183 tcf, or eight times the amount of conventional gas potential in the province.

Editing by Roffie Kurniawan