Tuesday 28 May 2024
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KUALA LUMPUR (Oct 19): Globaltec Formation Bhd’s 65%-owned Australian-listed subsidiary NuEnergy Gas Ltd has secured the environmental permit from Indonesia for the Tanjung Enim production sharing contract (PSC) in South Sumatra.

Following the receipt of the permit from Indonesia's Ministry of Environment and Forestry, NuEnergy can work towards completion of the final preparations for early gas production for the project, said the Australian firm in Globaltec's stock exchange filing on Thursday.

NuEnergy has a 45% participating interest in the Tanjung Enim PSC through its subsidiary Dart Energy (Tanjung Enim) Pte Ltd.
 
NuEnergy said it is currently awaiting the approval of gas price and gas volume allocation, a key requirement before commencing gas sales, from Indonesia's Ministry of Energy and Mineral Resources (MEMR).

The company plans to commence with a modest initial phase of gas sales, estimated at one million standard cubic feet per day (mmscfd) of coal bed methane (CBM) to its downstream offtake partner PT Laras Ngarso Gede.

“This offtake will underpin the initial phase of the project, progressing production to 25 mmscfd of gas as approved under the Tanjung Enim Plan of Development (POD1),” said NuEnergy.

The company said it has now identified locations for four early gas wells, a production facility and the subsequent flow lines for the early generation of gas at Tanjung Enim.

“On May 23, 2023 the directorate general of oil & gas from MEMR announced a new simplified gross revenue split proposal of 95% contractor and 5% government for the unconventional gas industry, to enhance project profitability, flexibility and technological innovation for unconventional gas industry players.

“Further details on this proposed split are expected to be provided before the end of [2023] and will be critical for the Indonesian CBM industry,” said NuEnergy.

The company also announced that it has received a 19-month exploration extension till March 29, 2025, for its wholly-owned Muralim PSC in South Sumatra.

“The extension will enable NuEnergy to complete the exploration commitments and acquire necessary production data, which will then facilitate the submission of a POD proposal for the Muralim PSC the final step required before entering the development phase for the asset,” it said.

NuEnergy holds four onshore CBM PSCs across South Sumatra. The other two are 30% interest in Muara Enim II PSC and 40% interest in Muara Enim PSC.

Shares of Globaltec closed unchanged at 61 sen on Thursday, giving the group a market capitalisation of RM164.16 million.

Edited ByS Kanagaraju
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