Siaran Pers

MINISTRY OF ENERGY AND MINERAL RESOURCES 

REPUBLIC OF INDONESIA

 PRESS RELEASE

NUMBER: 70/HUMAS KESDM/2011

Date: November 4th, 2011

MEMORANDUM OF UNDERSTANDING SIGNING BETWEEN

PT PLN (Persero) and VICO CONCERNING 

COAL BED METHANE SALES

The government that is Ministry of Energy and Mineral Resources (MEMR) continuously seeks to increase the utilization of natural gas for domestic needs, especially for electricity supply. One of its ways is by launching national development program 2011 to utilize Coal Bed Methane (CBM) as electricity fuel for community surrounding working areas.

To realize the program, today, Friday, November 4th, 2011 in MEMR Office, Minister of EMR, Jero Wacik witnessed the signing of Memorandum of Understanding (MoU) between PT PLN (Persero) and Virginia Indonesia Co. CBM Limited (VICO) regarding Coal Bed Methane Sales from working area of CBM Sanga Sanga East Kalimantan. 

The MoU will become the milestone for the first utilization of CBM in Indonesia. One of the scope of the MoU is that VICO willing to sell and distribute CBM to PLN sides with adequate volume to be used to supply electricity for local consumers with constant CBM supply for 0, 5 mmscfd for minimum period for 5 years, and PLN will utilize the CBM as fuel for electricity distributed to villages located inside or surrounding Sanga Sanga Working Area.

The MoU shall become valid as of its signing date and shall automatically end by the time the Gas Purchase Agreement (PJGB) is signed.

The Head of Legal and Public Relations Bureau,

Susyanto