Pertamina to Transfer Four CBM Blocks to Sugico

Pertamina Hulu Energi (PHE), a subsidiary of Indonesia’s state-run energy company Pertamina, will transfer operation of four of its coal bed methane (CBM) blocks to mining firm Sugico Graha due to efficiency considerations, Jakarta Post reported citing an official.

The transfer will need approval from rom Pertamina, the sole shareholder of PHE, and the upstream oil and gas regulator SKKMigas.

PHE has around 14 CBM working areas still in the exploration phase, all of which are expected to start producing in 2017, Jakarta Post said.

The four CBM blocks are Blok Air Benakat 1, Blok Air Benakat 2, Muara Enim 1 and Muara Enim 3.

PHE, however, would remain the majority stakeholder in the four blocks once the deals were sealed by holding 51 percent of participating interest.