VICO might be granted CBM PSC this year

Director General of Oil and Gas Evita Legowo said government might grant coal-bed methane (CBM) license to East Kalimantan gas producer VICO Indonesia this year.

Evita said on Thursday that under present regulation VICO would have first right to develop CBM at its oil, gas working area in Sanga-Sanga PSC onshore East Kalimantan. Evita said VICO is currently conducting Joint Evaluation Study, a condition to apply for CBM license. ?After the study is completed we will hold limited tender in which VICO would have first right. Hopefully, the whole process could be completed this year,? Evita said.

VICO CEO Chris Phillips earlier said he hoped to be able to get CBM PSC in the third quarter of this year.

VICO, which is equally owned by BP Plc and Eni Spa is eyeing to unlock the CBM potential at Sanga-Sanga PSC, which, according to Phillips, has the potential resources of 10 TCF.

Phillips said that VICO might be able to bring Sanga-Sanga CBM into production as early as 2012 to be supplied to Bontang LNG plant.(alex)