PHE, Multi Artha sign JOA to operate E. Kalimantan CBM area
Tuesday, March 1 2011 - 09:41 AM WIB
Upstream unit of state-owned oil, gas firm PT Pertamina Hulu Energy (PHE) through its unit PHE Metana Kalimantan B and private company PT Visi Multi Artha (VMA), a unit of Indonesia-listed oil, gas firm PT Energi Mega Persada (EMP) have signed a joint operating agreement to operate Sangatta II coal bed methane (CBM) working field in East Kalimantan.
PHE Metana Kalimantan B director Dwi Martono said the agreement was inked on Feb. 18, in which PHE holds 40 percent of participating interest and VMA holds the rest.
The production sharing contract's working field covers an area of 909.40 square kilometers, which is divided into two areas; Pinang and Bengalon.
Dwi said the preliminary production was expected to start in 2013 and would be used to meet demand for electricity in Sangatta, East Kalimantan which remains inadequate.
"For this year we will conduct a joint study and commence exploration drilling in 2012," he said. (bernard)