Publications

Almost four (4) years have been passed since the first CBM contract i.e. PSC of CBM Sekayu was signed on 27th of May 1998. And according to MIGAS, 32 CBM PSCs have been signed across Indonesia per June 2011. During that time, everybody involved in this business is fully aware that the CBM business models are totally different to business models of oil and gas conventional. The CBM business models cannot simply be adopted from oil and gas models. The CBM in Indonesia must be run through business models which suits to CBM, otherwise CBM development in Indonesia will lose its momentum. 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. 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 carry out the tasks throughout the project life. Due to its uniqueness, CBM development in Indonesia needs flexibility as much as it can be. Regulations, procedures, standards, policies must flexible enough to accommodate the dynamics and enthusiasm of the CBM operations. It must be customized to manage the CBM business’ state-ofthe- art. Absolutely, it is not and will not be easy task. This article will elaborate the experiences during almost four years of operations: dealing with real life challenges in the “field” and the “office”, as well as the potential challenges in the future if such existing and identified challenges are not well managed.