U.S. oil giant Exxon Mobil Corp. (XOM)said Tuesday it is seeking partners for a coalbed-methane project in Kalimantan, Indonesia.
ExxonMobil, the world's largest publicly traded oil company, is offering half of its working interest in three blocks where initial drilling results are encouraging, according to a document announcing the sale released by IndigoPool, Schlumberger Ltd.'s (SLB) mergers and acquisitions business.
The planned multi-well work program will be conducted over the next two years to prove commerciality and lay the groundwork for full development plans, according to the IndigoPool listing.
ExxonMobil spokesman Patrick Mcginn said the information provided by IndigoPool was accurate. He declined to offer further details.
ExxonMobil has a 49% interest in three coalbed-methane blocks--Banjar-1, Banjar-2 and Tapin--in East Kalimantan, according to the company's website. Indonesia's PT Sugico Graha has the remaining 51% interest.
Large, international energy companies are rapidly adding coalbed methane and other unconventional natural-gas resources, such as shale and tight gas, which are harder and more expensive to extract than conventional gas, because these resources usually have a longer lifespan than normal gas reservoirs.
Major oil companies are also trying to be the first to export the expertise and technology developed in recent years in North America to international markets.
Read more: http://www.foxbusiness.com/markets/2011/07/19/exxon-seeking-partners-for-indonesia-coalbed-methane-project/#ixzz1SbO1Mjxf