Sangatta West CBM block returned to Pertamina: Ministry

By Bernard Loebs

Energy and Mineral Resources Ministry said the Sangatta West CBM block, developed by Dart Energy and Ephindo and located within a conventional oil and gas block operated by PT Pertamina, has been returned to Pertamina.

"My understanding is that the Sangatta West CBM has been returned (by Dart and Ephindo) to Pertamina as the operator of the conventional block," said Naryanto Wagimin, Upstream Director at the Ministry, to petromindo.com.

Naryanto did not reveal the reason behind the move, but an industry source told petromindo.com that the CBM block did find crude oil and gas during a dewatering process, with crude output even reaching over 3,000 barrels within a month but the output did not come from the coal reservoir.

Under existing regulations on CBM operation located within a conventional oil and gas operation, the CBM block has to be returned to the initial operator (of conventional block) if it produces output that does not come from the coal reservoir.

Sammy Hamzah, President Director of Ephindo, did not return a message sent to his mobile phone seeking confirmation on the issue.

Editing by Dadan Wijaksana