Drilling set on Indonesia's first CBM tract

A test well on Indonesia’s first coalbed methane exploration and development production-sharing contract is to spud by September.

By OGJ editors
HOUSTON, Aug. 24
-- A test well on Indonesia’s first coalbed methane exploration and development production-sharing contract is to spud by September.

PT Medco Energi Internasional Tbk operates the 58,349-ha Sekayu Block 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. OGJ estimated Indonesia’s gas reserves at 106 tcf (see table, OGJ, Dec. 22, 2008, pp. 22-23).

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