The signing was conducted on the sidelines of an Indonesian CBM exhibition here on Wednesday in the presence of Energy and Mineral Resources Minister Jero Wacik.
"Total investment commitment for the first three years of explorations is 39.4 million US dollars and a signing bonus of 8 million US dollars," Oil and Gas Director General Evita Legowo said.
The eight CBM contracts consisted of a block offered by way of a 2011 direct auction namely Bangkanai I by PT Bangkanai CBM Energi, Bangkanai II by PT Borneo Metana Energi, Kuala Kapuas II by PT Bina Mandiri Energi, and West Sanga Sanga I by PT Sanga-Sanga Energi Prima.
In the meantime, four blocks have been offered by 2011 direct auction under Energy and Mineral Resources Ministerial Regulation No 33 of 2006 in an existing overlapping oil/gas and coal block, namely Air Komering Block by a PT Batu Raja Energi-PT Anugrah Persada Energi consortium, Air Benakat I by PT Pertamina Hulu Energi Metana
Sumatera 3 (PHE Metra 3)-PT Petrobara Sentosa consortium, Air Benakat II by PT PHE Metana Sumatera 6 (PHE Metra 6)-PT Prima Gas Sejahtera consortium, and Air Benakat III by PT PHE Metana Sumatera 7 (PHE Metra 7)-PT Unigas Geosinklinal Makmur consortium.
The signing of the eight blocks covers 42 CBM block cooperation contracts since 2002.
The 42 contracts include 17 locations in Sumatra and 25 others in Kalimantan and Java.
CBM is one of a unconventional oil/gas project from a reservoir with a low permeability and certain technology like fracturing.
The other unconventional oil and gas is shale gas, shale oil, tight sand gas, CBM, and methane hydrate.
Indonesia has the biggest CBM potential of 453.3 trillion cubic feet mostly in Sumatra and Kalimantan.
(SYS/H-NG/B003)
Editor: Suryanto
Copyright © ANTARA 2012
