Indonesia Signs Seven CBM Contracts

The Energy and Mineral Resources Ministry of Indonesia signed on Monday seven coal bed methane (CBM) and one oil-and-gas contract worth US$13.26 million in signature bonuses, whilst offering eight CBM and one oil-and-gas working areas.

“Investments from the seven CBM contracts total $48.93 million and the government earns a $8.26 million signature bonus while the same in the oil-and-gas contract is $19.5 million with $5 million in signature bonuses," The Jakarta Post quoted the ministry statement.

Three of the working areas are in East Kalimantan and four in South Sumatra.

Meanwhile, Energy and Mineral Resources Minister Darwin Zahedy Saleh called for increased exploration activities after Total E&P Indonesia West Papua was awarded the Southwest Bird’s Head working area in Papua.

“Without maximum exploration activities, our oil and gas reserves are dwindling. I hope all contractors maximize their exploration activities and meet the schedules,” he said.

The Indonesian government aimed to produce electricity from CBM by the end of this year to reduce dependency on petroleum as the country falls short on its oil production target this year.