Pertamina and Shell to develop coal bed methane

State oil and gas firm Pertamina will team up with Royal Dutch Shell Exploration Company to develop coal bed methane (CBM) potential in South Sumatra, Kompas reported Saturday.

Pertamina's director for upstream area Sukusen Soemarinda said in Jakarta Friday that both Pertamina and Shell has agreed to develop CBM potential in Pertamina?s operating area in South Sumatra and East Kalimantan.

Sukusen made the remark following the signing of the memorandum of understanding (MoU) on cooperation plan between Pertamina and two foreign oil companies, Singapore Petroleum Company and Shell in Jakarta Friday.

?CBM potential in Pertamina?s operating area in South Sumatra reaches 12 trillion cubic feet. Shell has sufficient experiences in developing CBM in South Africa,? Sukusen said.

Meanwhile, Shell's Vice President for New Business Development Guy Outen said that apart from the growing fuels and lubricant retail business, Shell is also eager to cooperate (with Pertamina) in upstream area. (*)