PHE says its CBM resources may rise to 41.67 tcf
Monday, February 11 2013 - 10:42 AM WIB
PT Pertamina (Persero), through its subsidiary Pertamina Hulu Energy (PHE), has identified between 28 and 29 trillion cubic feet (tcf) of coal bed methane (CBM) resources at its working areas and the resources may increase to 41.67 tcf, thanks to new explorations.
"41.67 tcf is indeed a very large number, and it will be enough to build (several) mini-LNG plants," said Eddy Purnomo, Operational Director of PHE, in Jakarta, Monday (11/2).
"The results of identification may be in reality somewhat lower or it could be much higher than we thought, because what lies underground is unpredictable," said Eddy.
According to the data provided by Eddy, PHE had identified CBM resources totaling to 20 tcf in 2008. The figure then rose to between 28 and 29 tcf in 2012 and is expected to further increase to 41.67 tcf in 2015 thanks to new explorations.
CBM resources in Indonesia are concentrated in two coal-producing regions of the country, namely Sumatra and Kalimantan.
Eddy said PHE are faced with various challenges in its operation. The cost of operation in Tarakan area of East Kalimantan, for instance, is particularly high because its operating area includes swampy lands.
"Since the deliverability of CBM is small, the economy of scale is a bit tough. So, we have to work efficiently," Eddy added.
According to the government?s data, Indonesia now has 54 CBM working areas, consisting of 22 blocks in Sumatra and 32 blocks in Kalimantan. PHE has stakes in 14 blocks, including 10 blocks in Sumatra and four blocks in Kalimantan.
Eddy said PHE plans to take another nine blocks until 2015, which will bring its CBM portfolio to 23 blocks. Of the 14 blocks in which it now has stakes, Pertamina serves as operator in nine, and as partner in five.
Edited by Johannes Simbolon