Abstract

Coalbed methane is a new energy resource that has not been developed in Indonesia. The reserve is estimated about 213 Tcf and spread over 16 basins. The utilization of this new energy resource will undoubtly contribute the industrial development in the country. This paper focuses on the technical and economic aspects of coalbed production in Jatibarang field, West Java. The methane reserve in this West Java area is 21 Tcf, and the location is quite strategic due to its proximity to the highly viable market of growing industrial nearby area. This paper presents a proposal of CBM development in Jatibarang Field. The result shows a very lucrative return for the investment on the project based on production sharing agreement

Introduction

Coalbed methane (CBM), a gaseous hydrocarbon produced from coal formation, is another prospective alternative for energy resource. Before the second world war several CBM wells had been drilled and some of them are found still producing. In some areas like San Juan basin and Black Warrior basin, USA, exploration and exploitation of CBM are underway.

Indonesia has an estimated CBM potential of 213 Tcf in coal bearing formation spreading over 16 onshore basins. An area which is considered to have the most prospective opportunity for CBM development is the Jatibarang field. The field, located in West Java, has a comparative advantage over the CBM fields of the other regions for two reasons. First, facilities and infrastructure are already available, since the field has been developed for oil and gas.

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