Indonesia Aims at Increasing CBM Output

Indonesia’s Energy and Mineral Resources Ministry has said that the country plans to produce 500 million standard cubic feet per day (mmscfd) of coal bed methane (CBM) by 2015, Jakarta Post said.

Currently, CBM production in Indonesia is still very low and cannot be calculated accurately because most of the projects are still in the exploration phase.

The government yesterday signed working contracts on eight CBM blocks in Kalimantan and Sumatra.

The eight blocks that have been auctioned off are Bangkanai I, which was awarded to PR Bangkanai CBM Energi, Bangkanai II to Borneo Metana Energi, Kuala Kapuas II to PT Bina Mandiri Energi and West Sanga-Sanga I to PT Sanga-Sanga Energi Prima.

The other four blocks are Air Komering, which was won by a consortium of PT Batu Raja Energi and PT Anugrah Persada Energi, Air Benakat I by a consortium of PT Pertamina Hulu Energi Metana Sumatera 3 (PHE Metra 3) and PT Petrobara Sentosa, Air Benakat II by a consortium of PT PHE Metra 6 and PT Prima Gas Sejahtera, and Air Benakat III, won by a consortium of PT PHE Metra 7 and PT Unigas Geosinklikal Makmur.

The total investment commitment for the eight blocks was $39.4 million.