Ministry preparing second shale gas tender
Tuesday, September 17 2013 - 07:54 AM WIB
The Ministry of Energy and Mineral Resources (MEMR) is preparing the second tender of shale gas concessions and expected the tender can be carried out by the end of this year or early next year.
Director of Oil and Gas Upstream Business Management at MEMR Hendra Fadly said the shale gas concessions which will be offered in the second tender are now in the process of joint study.
He said the development of shale gas will strengthen the country?s national energy resilience.
The first shale gas contract was signed by Pertamina Hulu Energi (PHE) on May 15, 2-13 during the 37th Indonesian Petroleum Association (IPA) forum.
Hendra said PHE has started activities and it is expected to carry out the activities as planned. The shale gas concession in northern Sumatra operated by the firm is estimated to contain 18.56 trillion cubic feet of natural gas. The firm plans to invest a total of US$7.8 billion for the project and is targeting to start production in the seventh year or after six years of exploration at the volume of 40-100 mmscfd.
Indonesia is estimated to have 574 tcf of potential shale gas resources, higher than coal bed methane and conventional gas resources, which are estimated at 453,3 tcf and 153 tcf respectively.
Editing by Johannes Simbolon