The Italian supermajor Eni has announced that it has been awarded a 37.8% stake in a in Sanga Sanga, a new coal-bed methane (CBM) production sharing contract (PSC), in Indonesia.
In a statement the company said that the project will be run in conjunction with the British supermajor BP (37.8%) as well as Opicoil (20%), a subsidiary of Taiwan’s CPC and Universe Gas and Oil (4.4%), a consortium that includes Japex and Osaka Gas Group.
“Sanga Sanga, located in the gas rich Kutei Basin of East Kalimantan, is Eni’s first major coal-bed methane project and it will be operated by the joint venture VICO (Eni 50%, BP 50%),” the statement said.
“Preliminary study in the block shows resources potential of about 4 trillion cubic feet (111 billion cubic meters) of gas to be better defined through an appraisal program that will commence in 2010,’ it added.
Indonesia has estimated CBM resources of 453 trillion cubic feet of gas in place, which
