Ten firms interested to study shale gas potentials

Director General for oil and gas at the energy ministry, Evita Legowo said that 10 companies have submitted their proposal to conduct in-depth study fn the shale gas potentials in the country.

She said some are foreign companies that have representative office in Indonesia. A source said that one of those companies came from Australia. The study may be conducted this year

Evita said the government may begin tendering the shale gas projects once the regulation is issued. ?Nevertheless, the study must be conducted in collaboration with the Indonesian government,? she said.

Upstream director for oil and gas at the energy ministry, Eddy Hermantoro, said that for first few projects, the energy ministry may award the projects to investors who are willing to take risk without tender process.

Some estimate that it requires around US$7-10 million to drill one shale gas well.

Shale gas is natural gas produced from shale. Shale gas has become an increasingly important source of natural gas in some advanced countries such as the United States over the past decade. (giok/roffie)