PTBA hopes to complete CBM well drilling this year
Friday, May 4 2012 - 03:05 AM WIB
State owned coal mining company PT Bukit Asam Tbk (PTBA) is upbeat that the drilling of three exploration wells at the company?s coal bed methane (CBM) concession area in Tanjung Enim, South Sumatra could be completed this year.
The company?s President Director Milawarma said in Jakarta on Thursday that the drilling of the two exploration wells had been completed. ?We are now in the stage of preparing for production activities,? he added.
He said that the CBM field in Tanjung Enim was quite promising because it could produce about 50 million standard cubic feet per day (mmscfd). The CBM field is expected to begin commercial production in 2013 and will supply its methane gas to a gas-fired power plant to be built in South Sumatera.
Bukit Asam has established a new subsidiary PT Bukit Asam Metana Enim to develop and operate the CBM field. The subsidiary has formed a joint venture with PT Pertamina Hulu Energi Metana Sumatera Tanjung Enim and Dart Energy (Tanjum Enim) Pty Ltd to run the project.
Based on a cooperation agreement, Bukit Asam Metana has a 27.5% interest in the CBM project, Pertamina Hulu Metana holds 27.5% interest, and Dart Energy owns the remaining 45% interest.
Editing by Benget Besalicto Tnb.