Pertamian to Spend $50 mn on CBM Development

Indonesia’s state-run oil and gas firm PT Pertamina, through its subsidiary PT Pertamina Hulu Energi (PHE), is planning to spend $50 million on developing coal bed methane.

The company expenditure will be spread over till 2015. The funds would be utilized to drill 50 exploration wells and conducting geological and geophysical studies.

Pertamina hopes to produce around 100 million standard cubic feet per day (MMSCFD) of CBM in 2015, 500 MMSCFD in 2020 and more than 500 in 2025, Jakarta Post reported Friday.

Currently, PHE holds participating interests as an operator or a shareholder of 14 CBM blocks, with three of them being awarded on Wednesday.

The company plans to supply gas to power utilities, city gas services and LNG plants,