Proceedings Title : Proc. Indon. Petrol. Assoc., 34th Ann. Conv., 2010
The largely untapped CBM reserves in Indonesia are drawing attention from investors worldwide to meet sizeable gas needs in the region in the near future. Although technology and expertise is still immature and the Government is formulating policies to support investment, the new frontier of gas production is being noticed. CBM is natural gas produced from underground coal seams. As such, it can be a relatively clean and efficient fuel upon which the nation can rely for its future energy needs. The explosive growth of CBM development poses unique challenges, many of which are different in kind and magnitude from traditional oil and gas development. In many cases, the proximity of CBM development to urban and rural development means that the impacts are of higher economic, social and political profile and affect more of population than traditional oil and gas development. These impacts include, but are not limited to, the numerous numbers of development wells, the construction of numerous improved and unimproved roads, compressor stations, gathering points, water treatment facilities and water disposal facilities. Sustaining and managing a CBM project can be complex and challenging assignments as all the aspects the project may be unique in nature and pose new problem every time. Developing a CBM project requires several resources to be identified, mobilized and applied effectively to work tasks throughout the project life. In-depth understanding of the CBM business philosophy, thoroughly knowing how it works on the field and anticipating comprehensively the business-risks profile as well as the economics will be the main criteria that CBM companies must have before launching a CBM development. This article is trying to share a real case study of how to develop a CBM project in Sekayu block and to describe how Medco prepares necessarily all precaution matters and issues, both tangibly and intangibly, before launching the CBM project.
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