PHE Develop Coal Methane Gas
In order to support government programs to diversify energy sources and increasing the national gas supply, PT. Pertamina Upstream Energy (PHE) in conjunction with PT. Kaltim Prima Coal (KPC) signed Production Sharing Contract (PSC) for the development of Coal Methane Gas (CBM) in Region II Work Sangatta Block EP and PKP2B PT.Pertamina property owned by KPC. The signing was conducted to coincide with the opening of the Indonesian Petroleum Association (IPA) Annual Convention & Exebition in Jakarta on May 5, 2009.
The signing was conducted by a consortium of PHE and KPC subsidiary, PT. Methane LEU B Kalimantan and PT. Vision Multi Arta (70% owned EMP) which each hold a 40% Participating interest and 60%. After signing the PSC that the consortium will make a commitment period during the first 3 years of exploration by drilling four core-hole and 4 wells eksporasi with an estimated investment value of USD 10 million.
“This signing demonstrates the commitment of Pertamina to go into business GMB, which is one source of alternative energy options for diversification program and is expected to address the needs Shortage of gas nationwide,” said Dwi Martono, as the President Director of PT. Methane PHE Borneo B.
“After a period of exploration over three years plus a 3-year development phase, it is expected that the first production of CBM gas from Sangatta II block can be on-stream in year 7 and so be able to supply gas to industi and households in the surrounding area of ??operations” added Dwi Martono. For PHE, the signing of the PSC GMB Sangatta Block II is the second cooperation agreement PSC GMB. Previously, through its subsidiary PT. Methane LEU A Kalimantan in cooperation with the Black Sand Energy PT Indonesia (Ephindo) has signed a PSC for Block Sangatta I.
GMB also known as CBM (Coal Bed Methane) are now beginning to glance to be developed after many people began to realize the lack of a national gas reserves. According to some predictions, in the year 2025 was no longer able to offset the high level of domestic gas demand, while natural gas resources are already committed to supply to another party. Potential methane gas reserves in Indonesia is equivalent to 453 TCF so as to help cover the shortage of national gas reserves. Budi added, most of the CBM resource potential exists in the existing National Working Area (WK) oil and gas Pertamina.
WK vast reaches approximately 120 thousand square kilometers (± 120 000 km2), which are scattered in the area of ??Jambi (Sumatra basin of Central), Prabumulih (South Sumatra basin), basin Barito, South Kalimantan and East Kalimantan, the Kutai basin (Sangatta, Bunyu, Tarakan DSK). GMB including alternative energy that has not been explored to the fullest. Utilization levels even still less than 2%, whereas the CBM is a relatively inexpensive alternative energy and can be updated with the level of difficulty that is not complicated compared to conventional oil and gas management. In some developed countries like America, Regulations and Australia, more than 40% of domestic energy needs are supplied by CBM. “Looking ahead, PHE will continue to develop business in the region of GMB GMB who happens to overlap with Pertamina’s oil and gas working areas in a number of blocks , among others, South Sumatra Block 1, Block 2 of South Sumatra, South Sumatra 3, Block and Block Suban Jambi “said Dwi Martono steadily.