PHE to divest 8 CBM working areas

By Bernard Loebs

PT Pertamina Hulu Energi (PHE) said it plans to relinquish operatorship over eight of its total 14 coal bed methane (CBM) working areas as they?re considered to be not economically feasible.

PHE President Director Gunung Sardjono said on Tuesday that the eight CBM working areas have gas production rate of less than 0.1 mmscfd, much lower than the average 0.3-0.5 mmscfd in Australia.

He said that the company will first try to sell the assets to other companies, and if no one is interested, it would return them to the government.

Gunung said that PHE has spent US$30 million in the eight CBM working areas, which have reached the exploration or dewatering stages. In addition to low output concern, PHE is still using conventional technology in the CBM exploration work, thus creating a huge cost.

Among of the CBM working areas to be released by PHE are Tanjung, Sangatta, and Muara Enim.

Editing by Reiner Simanjuntak