Indonesia according to research by Resource International Inc. Advance. (ARII) along with the Directorate General of Oil and Gas – Ministry of Energy and Mineral Resources has potential resource 453 TCF of CBM which is divided into 11 (eleven) basin on the island of Sumatra, Borneo, Java and Sulawesi. The results of CBM product is expected to be a solution to Indonesia's potential energy shortages in the future relying on energy sources from oil and natural gas.

The utilization of CBM in Indonesia following the fiscal term of Production Sharing Contract (PSC) with a validity period of 30 years. CBM reservoir characteristics are different from conventional gas with smaller permeability, predominantly adsorbed gas and under-saturated conditions require draining the water content (dewatering) before the production period that requires careful planning to produce a viable project either in terms of technical, economic and commercial.

Simulations conducted in Sumbagsel Field in Southern Sumatra, Indonesia, seeking development planning optimization by creating drilling scenarios of CBM wells with a certain amount of accumulation to get a good view of the economic indicators of Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI) and Payback of Time (POT). The results showed that CBM development can not be done with conventional gas development model approach which uses ‘chuck management system’ to control the production, while the properly management is required in the development of CBM drilling where the number of production wells will be proportional to the increase of production. Knowledge of reservoir characteristics and production optimization management of the number of drilling development wells during fiscal term contract with the production sharing contract will result in the economic development of CBM.

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