Kartini L Makmur, Robert Sidauruk
Following the success of the first round offer of shale gas working areas, the Government will now initiate second round of offers to both domestic and foreign investors.
The successful of the program is evident in the shale gas working area currently operated by PT PHE MNK Sumbagut, a subsidiary of PT Pertamina.
This area is estimated to contain a shale gas resource of 18.56 tfc (trillion cubic feet) at an investment of USD 7.8 billion.
Considering the quantum of this resource, Pertamina is optimistic first production will be achieved within seven years of the initial exploration.
“The shale gas working area offered in the first round is predicted to achieve a production level of 40-1000 MMSCFD (million standard cubic feet per day),” said Hendra Fadly, Director of Upstream Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) in Jakarta on Monday.
Hendra further added that the Government is conducting a joint study with several investors to discuss a proposed contract for additional shale gas working areas. He said that the contract should be finalized by the end of 2013 or early 2014.
“The potential for shale gas resources in Indonesia is estimated to be as much as 574 tfc. This figure is significantly larger than the potential for coal bed methane estimated at 453.3 tfc, or conventional gas resources estimated at only 153 tcf,” explained Hendra.
In relation to second round offers, Hendra explained that the Government is currently evaluating two blocs that will be tendered in Kisaran, North Sumatera and West Tanjung, South Kalimantan. Both blocs, Hendra added, are located in the same area as conventional oil and gas working sites.
The Director General of Oil and Gas at the Ministry, Edy Hermantoro, believes that in the near future there will be at least four shale gas contracts signed between the Government and investors.
Edy added that these shale gas blocs will be granted under a direct offer scheme (penawaran langsung) and at the end of this year there should be at least eight shale gas blocs contracts signed.
The Government began looking at the shale gas industry four years ago. Shale gas resources are generally located not more than 400 meters underground, a much lower depth than conventional gas recourses that can be as far as 2000 meters below the ground surface.
(hot/kc)
Kartini L Makmur, Robert Sidauruk
Following the success of the first round offer of shale gas working areas, the Government will now initiate second round of offers to both domestic and foreign investors.
The successful of the program is evident in the shale gas working area currently operated by PT PHE MNK Sumbagut, a subsidiary of PT Pertamina.
This area is estimated to contain a shale gas resource of 18.56 tfc (trillion cubic feet) at an investment of USD 7.8 billion.
Considering the quantum of this resource, Pertamina is optimistic first production will be achieved within seven years of the initial exploration.
“The shale gas working area offered in the first round is predicted to achieve a production level of 40-1000 MMSCFD (million standard cubic feet per day),” said Hendra Fadly, Director of Upstream Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) in Jakarta on Monday.
Hendra further added that the Government is conducting a joint study with several investors to discuss a proposed contract for additional shale gas working areas. He said that the contract should be finalized by the end of 2013 or early 2014.
“The potential for shale gas resources in Indonesia is estimated to be as much as 574 tfc. This figure is significantly larger than the potential for coal bed methane estimated at 453.3 tfc, or conventional gas resources estimated at only 153 tcf,” explained Hendra.
In relation to second round offers, Hendra explained that the Government is currently evaluating two blocs that will be tendered in Kisaran, North Sumatera and West Tanjung, South Kalimantan. Both blocs, Hendra added, are located in the same area as conventional oil and gas working sites.
The Director General of Oil and Gas at the Ministry, Edy Hermantoro, believes that in the near future there will be at least four shale gas contracts signed between the Government and investors.
Edy added that these shale gas blocs will be granted under a direct offer scheme (penawaran langsung) and at the end of this year there should be at least eight shale gas blocs contracts signed.
The Government began looking at the shale gas industry four years ago. Shale gas resources are generally located not more than 400 meters underground, a much lower depth than conventional gas recourses that can be as far as 2000 meters below the ground surface.
(hot/kc)