CBM Working Acreage to be Offered Mid-Year

CBM Working Acreage to be Offered Mid-Year

Friday, 19 Mach 2010, 09:59:41 WIB, ( Hits : 1 )

Jakarta,

The government planned to offer CBM working acreages in the mid of 2010, or around June or July. This is the first time for the government to offer CBM working acreage through regular auction.

“Usually we offer it through joint study (mechanism). But for tomorrow, we`ll do it through regular auction,” said the Director General of Oil and Gas EMR Evita H. Legowo after an inauguration event of gas distribution transmission usage for households, yesterday.

Evita said, the four CBM working acreages that will be offered are located in Sumatera and Kalimantan. On this CBM offering, investors will be given freedom to choose the cooperation contract, either Production Sharing Contract (PSC) or Gross Production Sharing Contract (GPSC).

Meanwhile for contractors that have signed PSC, they are also given the freedom to use GPSC model if they wish.

“If the contract has run, they can evaluate. It is possible,” she said.

By using GPSC model, gas from dewatering process is possible to be used for small scale power plants for the community near the CBM working acreage, where in PSC, gas could only be used after the Plan of Development is signed.

Gross Production Sharing Contract means the entire production result will directly be split in half between the government and the contractor, without any cost recovery. It means CBM development expenses made by contractors will not be charged to the State, while PSC uses cost recovery.