Indonesia Awards Coal Bed Methane Blocks to Two Groups

Indonesia’s Energy Ministry has awarded exploration and development rights for two coalbed methane blocks in East Kalimantan.

A consortium comprising India’s Monnet Ispat & Energy and Deep Industries was awarded the Melak Mendung I block, committing to spending $12.385 million and drilling 10 wells during the exploration period, on top of the $1.51 million signature bonus.

Ephindo Energy was awarded the Melak Mendung III block, committing to a $1.75 million as signature bonus, and to spend $7.950 million and drill one well in the three-year exploration period.

The tender process was offered for a total of seven CBM blocks in Sumatra and Kalimantan, of which two, the Melak Mendung I and III were awarded. Of the remaining five blocks offered, four were not awarded as the investors did not meet government requirements and one failed to draw any interest, said ministry official Evita Legowo.

India’s Essar Group was reportedly seeking two CBM blocks in Indonesia, but the company was not among the winning tenders.