REPUBLIKA.CO.ID, JAKARTA - State-owned oil and gas company, Pertamina, and four other investors will sign shale gas deal with Indonesian government. The five companies have completed joint study of shale gas in Indonesia.
"Government receives 70 proposal, but only five which have completed the joint study. The others are still in process," Acting Director General of Oil and Gas, A Edy Hermantoro, said on Friday, without mentioning four investors that will sign the deal.
Vice Minister of Energy and Mineral Resources, Susilo Siswoutomo, said Indonesia started to develop shale gas to decrease dependance on natural gas. Shale gas is natural gas which trapped within shale formations.
Sumatra, Kalimantan, Java, and Papua are believed to have large shale gas reserves in Indonesia. Government offers six regions of shale gas development this year. Four are located in Kalimantan, while the rest in South Sumatra.