CBM Asia Development Corp., Vancouver, BC, has signed a heads of agreement with PT Tranaco Utama, a private Indonesian company that holds first rights to undertake a production sharing contract for a 1,500 sq km coalbed methane block in Kalimantan, Indonesia.
The block is near several CBM PSCs operated by Exxon Mobil and BP PLC.
CBM Asia has the right to acquire 80% participation interest in the proposed coalbed methane PSC and be appointed operator in consideration for reimbursing Tranaco’s sunk costs and paying any signing bonus upon the award of a PSC. Tranaco would retain 20% interest.
CBM Asia and Tranaco on Jan. 18 submitted a proposal to the Director General of Oil and Gas to approve the award of a coalbed methane PSC.
CBM Asia in 2011 acquired a 70% participating interest and operatorship in the Bentian Besar CBM PSC and the Hulu CBM PSC in Indonesia.
The government has granted 39 CBM PSCs in Indonesia since 2008. Other companies active in CBM exploration in Indonesia include Dart Energy, Eni, Medco, Santos, and Total.