JAKARTA - Upstream Oil and Gas Supervisory Agency (BPMIGAS) signed two PSC contracts for coal bed methane with PT Samantaka Mineral Prima and PT Ridlatama Mining Utama. The government will get signing bonuses worth US$ 2 million.

The signing took place at the closing of the IndoCBM Exhibition and Conference in Jakarta on Thursday (06/26). BPMIGAS Chairman R. Priyono and Director General of Oil and Gas Luluk Sumiarso attended the event.

A group led by PT Samantaka Mineral Prima will manage Upstream Indragiri block in Riau will get 40 percent of revenue and the government will get 60 percent, based on the contract. PT Ridlatama Mining Utama, which will drill in Bentian Besar Block in East Kalimantan, will get a split of 55 : 45.

The two companies plan to spend US$ 13 million on exploration in the first 3 years. The investment will be done for geological and geophysical study at US$ 400,000, drilling 20 exploration wells and coring at US$ 12.4 million and the first phase of pilot projects at US$ 200,000.

According to the energy ministry's records, 54 companies have submitted proposals for CBM blocks in Sumatra and Borneo. Indonesia is estimated to have CBM resources at 453 TCF. ***