Shale gas investment in Indonesia reaches $8 m/well

The government expects to start a pilot project of shale gas exploration this year, which will need US$8 million in investment per well.

Director of Development at the upstream oil and gas regulator (BPMIGAS) A. Edy Hermantoro said on Tuesday the investment would be more costly in Indonesia than in other countries which have developed the new gas resource due to difficult terrains here. In the US for example the exploration costs only $2-3 million per well.

"Our terrain is more complicated. The depth of the fields determines the investment,? Edy said.

To find shale gas deposits, he added, an operator needs to drill up to 600 meters deep, while in other countries the depth only reaches 400 meters.

The volume of gas from the well will be known one month after the drilling starts, but it takes five years to shift shale stones into gas.

Government studies have found shale gas deposits in Sumatra and Papua.

Shale gas is unconventional gas like CBM. The shale gas is expected to boost domestic gas supply in the future. (godang)