#TITLE_ALTERNATIVE#

• Main Author: MOCH. NASIR (NIM 12202058), DEDE
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/7562
• Institution: Institut Teknologi Bandung

Coalbed methane potencies in Indonesia has large scale with gas in place reaching 450 TSCF. Having low recovery factor (around 10%), coalbed methane can only provide static resource around 45 TSCF. But, due to vast occurrence of coalbed methane in many places in Indonesia, actual reserve that can be realized to increase energy supply from natural gas in the next twenty years will be less than 45 TSCF. Coalbed methane can only substitute about 1-2% (around 250 MMSCFD out of 9 BSCFD Indonesia’s present gas production). A problem that could occur in the present coalbed methane development is that there are no specific regulations yet, which control technically nor economically. Therefore, a regulation which controls all aspect of the development is greatly needed in short time. Rules and laws which now exist, still cannot touch all of the aspects, especially concerning the income split between government and contractor. Coalbed methane production system is unique and slightly different from the conventional natural gas. Investors need to invest much money at the early production period with low income. Therefore, the present used PSC system will not be applicable on coalbed methane development. The proposed contract systems in this study are primarily based on economic considerations. The contract systems are Modified PSC and Royalty&Tax Contract. Both systems have their own advantages and disadvantages. In the modified PSC system Contract, government will still give cost recovery to the contractors. Therefore, on the modified PSC system, government will have the biggest sharing. On the other hand, In Royalty&Tax Contract system, contractors will have full of policies to arrange his field, but they also have to fee operational costs by themselves. <br />