VICO announces the award of E. Kalimantan CBM block

Virginia Indonesia Company (VICO) and its partners on Monday announced the signing of Sanga-Sanga coal-bed methane (CBM) PSC on shore East Kalimantan.

VICO is the operator of Sanga-Sanga conventional PSC which overlays the CBM concession. The Sanga-Sanga conventional PSC had been for decades producing gas, which is piped to Bontang LNG plant.

The Sanga-Sanga CBM partnership comprises of VICO (7.5%), BP (26.3%), Eni (26.3%), Virginia Inter Co (VIC) (15.6%) Opic Oil (20%) and Universe Gas and Oil (4.4%). The PSC contract for Sanga-Sanga CBM block will last for 30 years.

VICO and VIC are equally owned by BP and Eni.

Former VICO President Chris Phillips said in an interview earlier this year that the block might be able to produce 500-600 MMCFD of CBM to feed Bontang LNG plant in 2016.

Another company official earlier said that the block might contain 10TCF of recoverable CBM. (godang/bernard)