Tuesday 23 Jul 2024
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KUALA LUMPUR (May 20): Globaltec Formation Bhd said today that its Australia-listed subsidiary NuEnergy Gas Ltd is expected to obtain approval from the Indonesian government to develop its Tanjung Enim block in South Sumatera.

The approval is proposed to be granted by the Indonesian government via its agency the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) on June 17, said Globaltec.

In a statement, NuEnergy said it is proposed that SKK Migas grants the approval for the Plan of Development 1 under a Gross Split scheme in Coal Bed Methane (CBM) development on site.

“This event will mark the first grant of a plan of development for CBM in Indonesia along with the first implementation of a Gross Split based contract for the CBM industry in Indonesia.

“With the approval, it represents an evolution from an exploration to a development phase for the company’s Tanjung Enim PSC (production sharing contract),” said NuEnergy.

“This will be the first commercial CBM project in Indonesia and it also lays the foundation for the industry to address the increasing energy gap in Indonesia with this new clean energy source,” it added.

A detailed announcement will be made on June 17, NuEnergy added.

According to Globaltec’s website, the Tanjung Enim PSC underlines unranked best estimate prospective resources amounting to 100 billion cubic feet of gas. NuEnergy has four CBM PSCs in Indonesia including Tanjung Enim, it said.

Globaltec, together with New Century Energy Resources, own 65% in NuEnergy, the latter said on its website.

Globaltec shares were halted from trading from 9am to 10am earlier ahead of the announcement. The counter traded up 2.5 sen or 6.17% at the time of writing, valuing the group at RM115.66 million.

Edited ByLam Jian Wyn
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