Indonesia Launches CBM Tenders

Indonesia has launched its first competitive tender for coalbed methane acreage, marking a departure from its previous all direct tender process.

The 2010 CBM offering comprises 12 CBM working fields, seven of which are being offered by regular tender. The remaining five are available for direct bidding, said Evita Legowo, director general of oil and gas at the Ministry of Energy & Mineral Resources.

Documents for the regular tender can be collected between 10 January and 9 May and bid submissions are due back on 10 May.

Companies have less time in which to apply for directly offered acreage. For these five CBM tracts, documents can be collected from 10 January to 23 February and must be returned on 24 February.

Jakarta has already signed contracts for 20 CBM working areas and is looking forward to its first commercial production in 2011, including from Medco Energi’s Sekayu block, which will be used for power generation.