KUALA LUMPUR (Feb 10): Globaltec Formation Bhd announced that its subsidiary NuEnergy Gas Ltd has inked the heads of agreement (HOA) with PT Laras Ngarso Gede (PT Laras Energy) for the supply and sale of coal bed methane (CBM) in the Tanjung Enim Production Sharing Contract, South Sumatra, Indonesia.

Dart Energy (Tanjung Enim) Pte Ltd — NuEnergy’s wholly owned subsidiary — has entered into the HOA with PT Laras Energy, a downstream natural gas and its derivative products provider, on Friday (Feb 10).

The HOA is effective until the date the gas sale and purchase agreement is executed, or until Aug 9, 2023.

Both parties expect the agreement to be executed in the second quarter of 2023, and it will cover a period of five years and may be extended by mutual agreement in writing, according to Globaltec’s filing on Friday.

“Under the HOA, Dart Energy targets to commence the sale and delivery of CBM to PT Laras Energy on Oct 1, 2023 or a date mutually agreed [on] by all parties, and until the total contracted volume of CBM of 1.49 billion standard cubic feet has been fully delivered, whichever is earlier,” said Globaltec.

“This initial phase of gas sale, estimated at one million standard cubic feet per day (MMSCFD) of CBM, is targeting the energy needs of the underserved market in South Sumatra.

“The supply of the CBM to these areas will address not only the energy needs but will also help the industry in the vicinity to gradually migrate towards utilising clean energy in their operations/business.

“This gas sale of 1 MMSCFD represents the initial and gradual progress in achieving the 25 MMSCFD of gas production as approved under the Tanjung Enim POD-1, by the Ministry of Energy and Mineral Resources Indonesia on June 17, 2021,” it said.

Meanwhile, in a separate bourse filing on Friday, the integrated manufacturing services solutions provider also announced that NuEnergy, through its subsidiary, Indo CBM Sumbagsel II Pte Ltd, has obtained the approval for an additional exploration period of 24 months until Jan 29, 2025, to complete the exploration firm commitments for the Muara Enim II PSC.

“NuEnergy has a 30% working interest in the Muara Enim II PSC, covering an area of 819.6 km² located in South Sumatra, Indonesia,” added Globaltec.

“NuEnergy has drilled two exploration wells, and one production test well, and performed dewatering in the Muara Enim II PSC area, and has conducted the geology and geophysics studies.”

At the time of writing, Globaltec’s share price increased to 0.5 sen or 0.83% at 60 sen, while its market capitalisation stood at RM162.82 million.