Located 180 km north of Samarinda, this block covers an area of 909.4 km2 around Sangatta, the capital of East Kutai Regency in East Kalimantan and lies within a prodigious coal mining concession operated by Kaltim Prima Coal, a subsidiary of Bumi Resources. Sangatta 2 is a priority, identified as having high grade potential as a CBM project, with resource assessment relatively more advanced than for Tabulako. The block is within 50 km of the Bontang NG complex, one of the largest export terminals in the world offering significant potential for CBM gas reserves to find markets in North Asia. The PSC has been awarded to VMA holding a 60 per cent working interest and PHE at 40 per cent. VMA is owned as to 70 per cent by EMP, the balance owned by Bumi Resources. Preliminary evaluation indicates about 15 tcf gas with potential of some 3-4 tcf recoverable. Development plans include a corehole testing programme to measure reservoir properties, gas content and permeability in the Lembak Syncline. Given success a pilot CBM production plant would be installed to test long term gas and water production in order to evaluate sales options.
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