The Directors of Arrow Energy are pleased to announce that Arrow...

The Directors of Arrow Energy are pleased to announce that Arrow has entered into a Production Sharing Contract with the Government of Indonesia over the Tanjung Enim block in South Sumatra (refer to map below). Arrow has the majority contractor share of the PSC at 45% participating interest, and will be the operator of the block as agreed between its partners. Arrow’s partners in the PSC are PT Pertamina EP (Pertamina) and PT Bukit Asam (Persero) TBK (PTBA), each with 27.5% participating interests.


Arrow have been in talks with the parties for some time with regard to resolving the overlapping tenure issues relating to this block, as Pertamina operates the conventional oil and gas licence and PTBA the coal mining licence over this area. All parties are happy to have reached resolution over the regulatory issues concerned and hope that this example of cooperation will bode well for other such arrangements in the future.


Arrow Managing Director Nick Davies stated that “We are extremely happy to have been awarded this PSC. We believe that Tanjung Enim is a high quality CBM block with good access to existing infrastructure and to the gas markets of South Sumatra and West Java. Signature of this PSC re-affirms Arrow’s commitment to building a sustainable CBM business in Indonesia based on partnership and technical excellence. With the award of this PSC, Arrow now has title to 2 tenements in Indonesia including our 24% stake in the Sangatta West PSC in East Kalimantan. We are delighted to have partners of the quality and stature of Pertamina and PTBA on this block.”

The PSC is 189 sq. km. in area, contains coal of bituminous rank and is of Miocene age. Arrow’s regional geological modelling has highlighted this area as one of the most prospective for CBM in South Sumatra.