Government to Sign Six CBM Contracts

Wednesday, 11 March, 2009 | 17:42 WIB 

TEMPO Interactive, Jakarta:The government will sign six contractual agreements on coal methane/CBM working zones in May. “The signing is one result of the Indonesian Petroleum Association Conference and Exhibition," Oil and Natural Gas director-general Evita Legowo said at a press conference yesterday. 

This year the government also plans to sign 14 CBM working zone contracts. The government has signed seven such contracts, covering the Sekayu GMB Block, Indragiri Hulu GMB Block, Second Barito Banjar GMB Block, Bentian Besar GMB Block, Sangatta and Kutai GMB Block. 

Evita said the government had prepared some incentives to stimulate CBM development, for instance a 55 and 45 percent profit-sharing between the government and investors. “We are also discussing other incentives, like tax reduction,” she added. 

Evita also opened the opportunity for investors to ask for other reductions. As a result, 54 investors have submitted their request to develop CBM and 33 proposals met the criteria.  

DESY PAKPAHAN