Pertamina to Sign First Shale Gas Development Contract

Indonesia’s Pertamina will be the first company in the country to sign a contract for development of shale gas, Antara News quoted a senior official as saying.

Director General for Oil and Gas of the Energy and Mineral Resources Edy Hermantoro said Pertamina would sign the contract during the Indonesian Petroleum Association (IPA) conference in the middle of this month.

He said that the first shale gas production was expected in five years to come, namely in 2018, Antara reported.

The location of Pertamina shale gas working area is in North Sumatra near the border with Aceh province. Provisional data indicated that shale gas reserves in the area accounted for about 16 trillion cubic feet (TCF), Antara said. 

He said that based on regulations, Pertamina could directly appoint a company for the development of shale gas without being required to call tender for its exploitation.

Edy said that his office would also announce the auction of shale gas blocks in Riau Province and Central Kalimantan Province.

"The auction will also be announced during the IPA conference," he noted.