PTBA selecting potential partners to develop Sumatra CBM potentials

State-owned coal miner PT Tambang Batubara Bukit Asam (PTBA) was selecting potential partners to exploit coal bed methane (CBM) resources at its Ombilin and Pranap coal mines, which are located in West Sumatra and Riau, respectively.

The company?s president director Sukrisno said on Thursday the company is currently conducting a negotiation with interested parties to develop the CBM potentials.

?We expect to make choice in early next year,? he said without giving details.

Ombilin and Pranap coal mines have a resource 100 million tons and 790 million tons, with minable reserve 20 million and 370 million tons, respectively. Ombilin covers an area of 3,950 hectares, while the Pranap concession measures 17,100 hectares.

In May 2010, Australian-listed firm NuEnergy Capital Limited announced that CBM Indon Limited has entered into a contract with PTBA to conduct a Joint Evaluation and Study on an area of 2,012 km2 in Central Sumatra.

This area will be subject to a joint study and evaluation for CBM production potential over the next few months and with encouraging results, an application for a PSC will subsequently filed with the government regulator, the company said in May 7.

NuEnergy is in the process of acquiring Indon CBM and, hence, its coal bed methane license areas in Indonesia.

Currently, PTBA together with PT Pertamina EP each has a 27.5 percent interest in the Tanjung Enim CBM block in South Sumatra with Australian firm Arrow Energy, which is the block?s operator, has the remaining balance. The block was awarded in 2009. (denny)