Indonesia looks to coalbed methane as oil, gas output dwindles
Jakarta (Platts)--11Apr2005
The Indonesian government is preparing to invite investors to explore deposits of coalbed methane, natural gas found in association with coal seams, for development as an alternative source of energy. The profit split for CBM projects could be a more favorable 50:50, compared with the 70:30 in favor of the government for natural gas production sharing contracts, oil minister Purnomo Yusgiantoro told reporters in Palembang, South Sumatra, Monday. The government does not have the financies to explore CBM resources on its own, Purnomo said. Indonesian resources of coalbed methane gas pegged at 450 Tcf are bigger than natural gas reserves estimated at 190 Tcf, he added. A better profit split for the contractor was justified as CBM entails higher exploration costs, the oil minister said. Some foreign investors had already showed an interest in this area, including Japan's Mitsui, Purnomo said. "The government is currently preparing the regulation regarding on CBM exploration and development to attract investors," he added. This story was originally published in Platts Global Alert http://www.globalalert.platts.com
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