A test well on Indonesia's first coalbed methane exploration and development production sharing contract is to spud by September 2009.
PT Medco Energi Internasional Tbk operates the 58,349-ha Sekayu Block is in the South Sumatra basin. Medco has estimated that the first commercial CBM production will start in 2011.
Other participants in Sekayu include Batavia Energy Inc. and CBM Asia Development Corp., Vancouver, BC.
The government granted 15 CBM PSCs between May 2008 and August 2009 that represent $96 million in exploration commitments in the next 3 years.
Indonesia's CBM resource is estimated at 453 tcf in place, of which 183 tcf is attributed to the South Sumatra basin. An estimate earlier this decade put the resource at 337 tcf (OGJ, Oct. 22, 2001, p. 40). OGJ estimated Indonesia's proved gas reserves at 106 tcf (see table, OGJ, Dec. 22, 2008, pp. 22-23).
