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PP: CBM – 1<br />
Rambutan<br />
(GOI Sponsor)<br />
Evaluation<br />
PP: CBM – 1,2,3<br />
Estimated CBM Production<br />
~100 MMcfD<br />
USD 600 million<br />
USD 2.5 billion<br />
Estimated CBM<br />
Production<br />
1-1.5 BcfD<br />
PP CBM: – 2,3<br />
(private investment)<br />
2 nd & 3 rd CBM<br />
contract<br />
Adjustment of<br />
CBM Incentive<br />
Estimated CBM<br />
Production ~0.5 BcfD<br />
2004<br />
2005 2006 2007<br />
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025<br />
Increasing number of CBM Development Contract<br />
Average production = 250 MSCFD/well<br />
Legend:<br />
Ministerial<br />
Regulation<br />
Government participation<br />
No. 033/2006 &<br />
Project evaluation<br />
Preparation of<br />
Start of Commercial Era<br />
CBM Contract<br />
CBM production<br />
Terms &<br />
Start of CBM era<br />
Conditions<br />
(1 st CBM Contract)<br />
PP<br />
: Pilot Project<br />
Estimated Investment & Production<br />
Figure 2. Road Map of CBM Development Program.<br />
As the first CBM pilot project entering project evaluation phase in year 2007, more pilot<br />
projects to be carried out by private sectors are expected to begin and CBM development<br />
contract terms and conditions are also expected to be issued. Then, the first CBM<br />
development contract is expected to be signed in year 2009. The CBM production target of 1 -<br />
1.5 BSCFD or 1 - 2% of the total energy consumption is expected to be reached in year 2025.<br />
An increasing number of CBM development contracts and investment for CBM development<br />
will result in a gradual increase in CBM production. A total investment of USD 600 million<br />
for over a period of 5 years is required to increase CBM production to 100 MMCFD by year<br />
2014. Additional investment of USD 2.5 billion over a period of 10 years is also required in<br />
order to achieve the CBM production target of 1-1,5 BCFD in year 2025.<br />
REGULATION<br />
In order to support the growth of CBM business in Indonesia, the Government recently issued<br />
Ministerial Regulation No. 033/2006 concerning the Business Activity of Coalbed Methane<br />
Development. The objectives of the Ministerial Regulation are to create conditions conducive<br />
to investment, to increase the national <strong>gas</strong> reserves from CBM, and to make new operational<br />
opportunities.<br />
In the Ministerial Regulation No. 033/2006, several aspects related to coalbed methaned<br />
evelopment have been covered:<br />
1. Planning and stipulation of CBM operational areas<br />
2. Offering of CBM operational areas in open area<br />
3. Offering of CBM operational areas in the oil and <strong>gas</strong> operational area<br />
4. Offering of CBM operational areas in the coal mine operational area<br />
5. Offering of CBM operational areas in the overlapping area<br />
6. Activity steps (pre contract, contract period, post contract)<br />
7. Data management and utilization<br />
8. Rules for development and supervision and relinquishing (partial/total)<br />
CBM operational areas.<br />
148 New Energy Resources in the <strong>CCOP</strong> Region - Gas Hydrates and Coalbed Methane
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