| Shale gas will be developed in eastern Indonesia |
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| Saturday, 13 March 2010 09:32 | |||
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JAKARTA:
The government will soon open work areas for the study along with the
development of shale gas in eastern Indonesia region is estimated to
double the national gas reserves with the addition of about 1,000
trillion cubic feet.
Business Development Director for Upstream Oil and Gas Directorate General of Oil and Gas said Edy Hermantoro shale gas is one of the unconventional gas outside the CBM which has been developed in Indonesia. According to him, based on initial studies conducted Bandung Institute of Technology shale content of the gas in Indonesia, particularly the Eastern part is estimated at 1000 tcf. "That's just the beginning of the ITB research, too early to be sure how much actual real content," he said yesterday. To know more in detail about the potential, he said, the government will open areas for the work done with the study. Some companies that already have experience developing shale gas, he said, had expressed interest to the government. "This month we go to WK for the joint study. Maybe the first time will be opened in the onshore areas. Has anybody expressed interest," he said. Shale gas is a gas obtained from shale rock fragments (clay) or where the formation of natural gas. Currently, shale gas has been developed in the United States and Canada, followed by European countries and also Australia. In the U.S., shale gas development began production in 2000 and produce 16 billion cubic feet, or about 44 MMSCFD in 2004. Australia is estimated to begin to produce shale gas in 2015-2016. Edy added costs required for exploration of gas shale resembles the natural gas exploration, which is about U.S. $ 10 million-US $ 15 million per well. Shale gas would be economical if the position does not exceed 400 meters below the surface. Discourse associated with the application of gross contract Production Sharing Contract (PSC) Edy government revealed it has submitted plans to the Indonesian Petroleum Association (IPA). The government, he said, asking for a response from the application of science related to the possibility that gross PSC in Indonesia has implemented beginning oil and gas development in Indonesia. "The PSC's gross we do not talk that there is cost recovery of production is divided between the government and contractors."
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