Star Energy in CBM talks with Shell

National energy firm Star Energy is in talks with Anglo-Dutch giant Shell to jointly tap coal-bed methane (CBM) potential at its Sekayu oil, gas block onshore South Sumatra.

Star Energy Senior official Sanusi Satar told Petromindo.Com on Monday that talks with Shell are progressing.

Sekayu is oil, gas block awarded to Star Energy in 2007. The company now has 100 percent interest in the block. Under Indonesian regulation, oil, gas company operating at the area where CBM potential exists has first right to explore for CBM.

Meanwhile, Sanusi also said that the company is planning to drill an exploration well in Sekayu. : ?We have completed seismic and is currently in the process of securing land for drilling location,? he said, adding that the well is expected to be drilled October-November this year.

Star Energy is controlled by timber and petrochemical tycoon Prajogo Pangestu. (godang)