Pertamina signs two CBM contracts

State owned oil and gas company Pertamina, through its subsidiary Pertamina Hulu Energi (PHE), has secured two more contracts to develop two coal bed mathane (CBM) blocks in Sumatra and Kalimantan.

PHE is scheduled to sign the contracts in Jakarta today.

The company?s president director Dwi Martono said Thursday that the two blocks were the Sumatra I block in South Sumatra and the Metan Tanjung II block in South Kalimantan.

Dwi said that PHE had a firm commitment to invest about US$12.4 million for exploration activities in the first three years at the two blocks. Further investment will depend on the results of the exploration, he added.

PHE has established five subsidiaries since 2008 to develop CBM in the country. They include PHE Metane Kalimantan A which operates Sanggata -1 block, East Kalimantan in cooperation with Ephindo; PHE Metane Kalimantan V which operate Sanggata-2 block in cooperation with PT Visi Multi Artha; PHE Metana Sumatera Tanjung Enim which operates the Tanjung Enim block in cooperation with PT Bukit Asam dan Arrow Energy; PHE Metana Sumatera 2 in Muara Enim in cooperation with EP Trisula CBM Energi and PHE Metana Sumatera 1 in cooperation with PT. Indo Gas Methan, and PHE Metan Tanjung II, which operates the Tanjung I area II in South Kalimantan .

Indonesia is estimated to hold 453 trillion cubic feet (TFC) of CBM. Currently, the government has awarded 2 CBM contracts, with some blocks expected to begin production in 2011. The government has said that CBM gas utilization will be focused on the power sector. (godang)