Tanjung Enim CBM Project starts production in 2014

By Hiski Darmayana

IDX-listed PT Bukit Asam Tbk (PTBA) has targeted that the coal bed methane (CBM) project in Tanjung Enim concession in South Sumatera will start production next year.

The company, together with its consortium, has started drilling of the third well, which is expected to be completed in 2014.

After completing the third well drilling, the company will have to finalize several more stages before finally starting its production.

?Possibly, we can start the commercial production of CBM in 2014,? the company?s Corporate Secretary Joko Pramono told Petromindo.com in Jakarta over the weekend.

Last year, the project had produced CBM gas during the second drilling. ?But the production at that time was trial and still in small scale,? he said.

The CBM project in Tanjung Enim is developed by a consortium of PTBA, state oil and gas firm PT Pertamina, and Dart Energy. In the consortium, PTBA has an interest of 27,5 percent, Pertamina 27,5 percent, while Dart Energy as the owner at 45 percent.

Once in operation, the CBM project is estimated to have a production capacity of 40 million cubic feet per day (MMSCFD).

Editing by Benget Besalicto Tnb.