Pertamina is considering divesting its 60% non-operating interest in the Muara Enim CBM PSC, located in onshore South Sumatra Basin, as of early May 2019. Pertamina is seeking a potential investor with the capability to deliver project completion for this asset.  The PSC was officially awarded on 30 November 2009, with a full term of 30 years. In 2015, the exploration period for the block was extended by four years, until 30 November 2019. The block is operated by PT Trisula CBM Energy (a subsidiary of NuEnergy Gas) with 40% interest.  The block covers an area of approximately 520 sq km after the second partial relinquishment. Firm work commitments for the first three years of exploration have been completed. These included nine G&G studies, two core holes, two exploration wells and one production test. Going forward, the operator is planning to continue with exploration activities in order to enable the preparation of a Plan of Development (POD).   Based on operatorâs studies as of 2017, the block is estimated to contain GIIP resources of 1.14 Tcf. Gas content in the coal is up to 141 scf/ton. Coal seams are found between 500 and 700 m depth, with thickness up to 44 m, and low permeability. Coal rank ranges from lignite to sub-bituminous.  The block is located near existing infrastructure, and adjacent to other CBM blocks operated by NuEnergy, allowing for potential synergies in case of development.   Interested parties are invited to submit a Letter of Interest (LOI) by 12.00 PM (GMT) on 14 June 2019. Pertamina will provide the necessary information regarding the bidding process, as well as a Confidentiality Agreement (CA). Upon signing of CA, potential investors will be granted access to Pertaminaâs Data Room and management presentation.  The LOI should be sent to the following address:  PT Pertamina (Persero)  Jl. Medan Merdeka Timur No. 1A  Jakarta 10110  Indonesia  To the attention of:  Ida Yusmiati  Senior Vice President Upstream Business Development   email: ida.yusmiati@pertamina.com   Background Information  The Muara Enim CBM PSC was awarded to PT Pertamina Hulu Energi (PHE) Metra Enim (60%) and PT Trisula CBM Energy (40%, operator), a subsidiary of NuEnergy, on November 2009. Firm commitments for the first three years of exploration amounted to USD 4.25 million and these included G&G studies, drilling of two core-holes, drilling of two exploration/pilot wells and conducting dewatering/production testing. Signature bonus paid for the block was USD 1 million.   CBM exploration in the block is likely targeting the Suban and Magnus coal units of the Upper Miocene to Pliocene Muara Enim Formation.    The first exploration well, ME-CBM 1, was spudded in late October 2011 and was successfully completed in January 2012, with a TD of 733 m. The well encountered a total coal thickness of 38.2 m, including one continuous coal seam of 19 m. Laboratory tests from the well indicated average gas content of 115scf/ton (on a dry ash free basis).    The second well, ME-CBM 2, was spudded in March 2012 and completed in May 2012, at a TD of 840 m. Net coal seam thickness in the well was 43 m, with similar properties to the coals encountered by the first well.  Pilot production testing (dewatering) operations commenced in October 2012 via recompletion of ME-CBM 2. The first gas was flared 14 hours after commencement of dewatering. The initial production and flaring results exceeded expectations. Pilot production on the well recommenced in May 2013, with completion across five additional coal seams. The resulting gas rates were higher than the initial pilot production period.  In February 2013, NuENergy signed a non-binding, non-exclusive Memorandum of Understanding (MOU) for potential gas sales from the block to local company PT Dharma Pratama Sejati. The MOU was related to the sale of 1-5 MMcfg/d at a price of USD 10 per MMBtu.  In late 2013, the operator drilled and completed the second pilot production well to a TD of 802 m. A total of 46 m of net coal seams was intersected, with one coal seam exceeding 13 m in thickness. The well was completed using multiple completion techniques. During finalization of well completion, gas flow was recorded.
PT Pertamina Hulu Energi (PHE) Muara Enim CBM PSC - Farm-in opportunity available