Pertamina allocates $3.14m this year for CBM projects

State-owned oil and gas firm PT Pertamina has allocated US$3.14 million this year to help finance the development of coal bed methane (CBM) projects in South Sumatra and East Kalimantan, Kontan reported on Friday.

The paper said that the company owns 14 CBM blocks, all of which would start production in 2017. The blocks would be operated by subsidiary PT Pertamina Hulu Energi (PHE).

Pertamina Upstream Director Muhammad Husen said that the CBM blocks in Sumatra will get larger amount of investment of about $19.1 million, while the blocks in Kalimantan will get $12.3 million.

Among of Pertamina CBM blocks are Tanjung Enim, Muara Enim I, II, III, Suban I and II, and Air Benakat I, II, and III blocks, all of which located in South Sumatra. The blocks which are located in East Kalimantan include Sangatta I and II, and Tanjung II and IV blocks.

PHE Corporate Secretary Wahidin Nurluzia said that said that about half of the investment requirement for the production of the CBM blocks will come from the company, while the remainders will be distributed among partners such as PT Bukit Asam, Arrow Energy, Trisula CBM, Energy, and Sangatta West CBM Inc. But particularly for Tanjung II block, the investment will entirely come from PHE, which fully owns the block.

Wahidin said that the entire CBM blocks will start production in 2017, with projected output of more than 100 mmscfd. Pertamina wants a selling price of between $13-14 per mmbtu. (*)