PGN plans to acquire a stake in Sumatra CBM project

IDX-listed state gas distributor PT Perusahaan Gas Negara (PGN) plans to acquire a minority stake in coal bed methane (CBM) project in Sumatra, a company director said on Wednesday.

Michael Baskoro said that the company may buy a maximum 10 percent stake in the project and was also seeking to become the offtaker of a CBM gas project in South Sumatra.

He refuses to give the name?s of the block.

Director General for Oil and Gas Evita Herawati Legowo said on the sidelines of the IndoCBM 2010 event in Jakarta on Wednesday said there were six CBM blocks that would start producing in 2011, including Sekayu block in South Sumatra which is expected to produce 1 MMSCFD and Tanjung Enim in South Sumatra (1 MMSCFD).

Other CBM projects in Sumatra include Batang Asin block in South Sumatra, Rengat block in Central Sumatra, Ogan Komering II in South Sumatra and Musi Banyuasin block in South Sumatra.(bernard)