More CBM working areas contracts signed
Monday, August 1 2011 - 06:29 AM WIB
Apart from the contracts signing, the energy ministry also offered 10 (ten) working areas through direct appointment auction (lelang penawaran langsung) mechanism, comprising of eight CBM working areas and two Oil and Gas working areas. Those signing the CBM and Oil and Gas working areas are as follows:
CBM Working Areas Contracts
? Two CBM Working Areas were auctioned in accordance with Ministerial Regulation (Permen) No.36/2008, beginning from January 10, 2011 to May 9, 2011. The winners had been announced on July 14, 2011:
| No. | Working Areas | Size (Km2) | Location | Contractor |
| 1. | GMB Melak Mendung I | 981.9 | East Kalimantan | PT Ephindo Mega Methana Inc. |
| 2. | GMB Melak Mendung III | 995.7 | East Kalimantan | Consortium of Deep Industries Limited - Monnet Ispat & Energy Limited |
Five CBM Working areas were offered through Direct Offering, in accordance with Permen No.33/2006, which are overlapping with existing Oil and Gas WKs and Coal IUP, such as:
| No. | Working Areas | Size (Km2) | Location | Contractor |
| 1. | GMB Belida | 1,498 | South Sumatera | Consortium of PT Sele Raya Resources ? PT. Andalas Metana Energi |
| 2. | GMB Lematang | 805.8 | South Sumatera | Consortium PT. Medco CBM Lematang ? PT. Methanindo Energi Resources ? PT. Saka Energi Indonesia
|
| 3. | GMB Kutai II | 487.3 | East Kalimantan | Consortium PT. Ephindo Kutai North Inc. ? PT. Resources Alam Energi |
| 4. | GMB Suban I | 1,120 | South Sumatera | Consortium PT. Pertamina Hulu Energi Metana Suban I ? PT. Suban Energi |
| 5. | GMB Suban II | 998 | South Sumatera | Consortium PT Pertamina Hulu Energi Metana Suban II ? PT. Suban Methan Gas |
The main principle of the cooperation for the seven CBM working areas are: production sharing (after tax) between the government and contractors at 55:45 ratio, FTP 10% non-shareable (except with Pertamina, shareable is based on interest) and Cost Recovery of 100%.
The firm exploration commitment activities of the seven CBM working areas contractors for the next three years exploration period, are including: G&G Study, 27 corehole drilling, 21 exploration drilling, Pilot Project Phase I, consisting of 11 dewatering and 11 production test wells. Therefore, the total investment commitment reached US$ 48.93 million. Meanwhile, Signature Bonus to be received by the government reached US$ 8.26 million
Oil and Gas Working Area Contract
One Oil and Gas Working Area Contract based on Regular Auction stage II, 2010 was signed, i.e.:
| No. | Working Area | Location | Contractor |
1. |
Southwest Bird?s Head | Papua |
Total E&P Indonesia West Papua |
The exploration commitment activities of the Oil and Gas Working Area for the next three years of exploration period, are including: G&G Study worth US$ 2.5 million, 2D seismic acquisition for along 70 kms worth US$ 2 million and 1 exploration well worth US$ 15 million. Therefore, the total firm investment commitment reaches US$ 19.5 million. The signature bonus to be received by the government reach US$ 5 million.
The 10 CBM Working Areas offered through direct offering auction mechanism (Lelang Penawaran Langsung) are as follows:
? Eight Coal Bed Methane working areas
| No. | Working Area | Location |
| 1. | GMB Bangkanai I | Central Kalimantan and East Kalimantan |
| 2. | GMB Bangkanai II | Central Kalimantan |
| 3. | GMB Bangkanai III | Central Kalimantan and East Kalimantan |
| 4. | GMB Bangkanai VI | Central Kalimantan |
| 5. | GMB Kuala Kapuas I | Central Kalimantan |
| 6. | GMB Kuala Kapuas II | Central Kalimantan |
| 7. | GMB Tanah Laut | Central Kalimantan |
| 8. | GMB West Sanga-sanga I | East Kalimantan |
The requirements and pre-condition of the the eight CBM Working Areas are: FTP 10% (non-share); Split (Government : Contractor 55:45 (after tax) and Cost Recovery 100%.
? Two Oil and Gas working areas (Direct Offering for Period II, 2011).
| No. | Working Area | Location |
| 1. | Kuala Pambuang | Central Kalimantan |
| 2. | North Baturaja | South Sumatera and Lampung |
The requirements and pre-condition of the Oil and Gas Blocks that are offered are: FTP 20% (shareable); Oil Split (Government: Contractor 60:40 (after tax) and Gas Split: 60:40.
Those investors interested to take part in the Direct Offering Auction CBM WK and Oil and Gas WK can get access to the bid documents from September 12, 2011 to 26 October 2011. The documents stating the interest of the participants are to be submitted October 27, 2011 from 09.30 to 14.30 WIB. (godang/giok/josef)