BP acquires coalbed methane resource in Indonesia
30 November 2009
BP today said that a consortium led by its joint venture VICO, which is owned jointly with Italian negy company ENI SpA has signed a production sharing contract with the Government of Indonesia for the exploration and development of coalbed methane (CBM) on the Sanga-Sanga block in East Kalimantan, Indonesia.
The consortium comprises VICO (7.5 per cent and operatorship), BP (26.25 per cent), ENI (26.25 per cent), VIC (15.625 per cent), Opicoil (20 per cent) and Universe Gas and Oil (4.375 per cent).
VICO and VIC are joint ventures owned 50:50 by BP and ENI, giving each company a total 37.8 per cent interest in the contract.
VICO has been producing conventional gas resources from the Sanga-Sanga block for over 40 years, and the signature of this production sgharing contract is expected to mark the first significant development of coalbed methane in Indonesia.
In addition to VICO, BP's interests in Indonesia include the Tangguh LNG project in Papua, which exported its first cargo of LNG in July 2009, Castrol lubricant blending and marketing, and petrochemical manufacturing.
BP said, though Indonesia has extensive coal reserves, estimated to hold up to 450 trillion cubic feet of coalbed methane, as yet des not have commercial CBM production.