Two shale gas PSC offered during IPA 2013

By Ruli Setiawan

The government will sign the first contract of shale gas development with state oil and gas firm PT Pertamina, and will offer two working areas of shale gas to investors during the upcoming conference and exhibition of the Indonesian Petroleum Association (IPA) on 15th May 2013.

During the regional workshop on the changing global gas market and unconventional gas in Jakarta on Monday, the energy and mineral resources ministry?s Oil and Gas Director General A. Edy Hermantoro said that all of the shale gas working areas to be signed and to be offered are located in southern Sumatra.

According to Edy, the development of unconventional gas, such as the shale gas and coal-bed methane (CBM), has drawn the interests of investors. ?Until now, the government has signed 54 contracts of CBM, and has received 75 proposals for feasibility studies of shale gas,? said Edy at the conference, which was held in cooperation with the US government.

He added that the government would encourage the massive development of shale gas, including to support the procurement of equipment for drillings. ?We hope that the shale gas development will further strengthen our national energy security,? he said.

On cooperation with the US on the development of shale gas, energy and mineral resources deputy minister Susilo Siswoutomo said during the same occasion that Indonesia should learn from the success of US to develop the shale gas. The US, which used to import gas, has now managed to fulfill its need of gas with the development of shale gas.

?We can learn from the experience of the US that has been successful in developing shale gas. With that we can accelerate the shale gas development,? he said.

Indonesia has the potential reserve of shale gas at an estimated 574 TCF, which is bigger than its CBM at 453,3 TCF, and the conventional gas at 153 TCF. Indonesia?s reserves of shale gas are located in Sumatera, Kalimantan, Java, and Papua.

Editing by Benget Besalicto Tnb.