The state-run energy firm PT Pertamina and its partners will invest $3.3 billion in the development of gas reserves at Cepu. The investment comprises operational and capital expenditure of $1.9 billion and $1.4 billion, respectively. The firms are expected to make a final investment decision in 2015–16, with the engineering, procurement, and construction (EPC) works likely to start by December 2013. The gas production from the Cepu gas project is expected to come onstream by 2017, with outputs of 185,000 million cubic feet per day (mcfd) and 3,000 barrels per day (bpd) of gas condensate by 2019. The company will also invest $1.5 billion in the development of 200 coal bed methane (CBM) wells over the course of the next five years. Reportedly, it intends to focus on tapping non-conventional gas rather than shale gas. Pertamina will utilise the investment to implement exploration activities and commence production. It expects its CBM production to reach 100 million metric standard cubic feet per day (mmscfd) by the end of 2017 and up to 500 mmscfd beyond 2020. The company currently has a total of 41.67 trillion cubic feet of CBM reserves.
