November 30, 2009
Acquisition of exploration interest in a coal bed methane (CBM) block in Indonesia

A consortium of four Japanese companies including Osaka Gas (*1), in partnership with BP, Eni, and other companies, acquired a CBM interest in Indonesia through an international bidding process organized by the Indonesian government.  A production-sharing contract was signed by the companies and the government of Indonesia for the Sanga-Sanga CBM Block (*2) in East Kalimantan.  The companies plan to conduct a feasibility study for commercialization of CBM in the next three years.

The CBM acreage has the total area of about 1,750 square kilometres.  The area overlaps with the Sanga-Sanga gas field owned by the four Japanese companies through Universe Gas & Oil.  In order to pursue development opportunities of CBM in the region, the four companies established Japan CBM Limited today.