KUALA LUMPUR (March 11): Globaltec Formation Bhd (KL:GLOTEC) said it is letting go of its stake in the Muara Enim 2 production sharing contract.
The company has 30% interest through Australia-listed subsidiary, NuEnergy Gas Ltd, and operates the contract that explores and extracts coal bed methane in Indonesia. NuEnergy will work with Indonesia's authorities to complete the relinquishment, Globaltec said in an exchange filing.
The relinquishment of Muara Enim 2 provides NuEnergy an opportunity to “further optimise” its portfolio of coal bed methane — a form of natural gas found in coal deposits or coal seams — by prioritising more advanced projects with near-term monetisation potential, Globaltec said.
All related exploration expenditures and penalty costs were fully accounted for in the financial year ended June 30, 2019 while the restoration costs are expected to be negligible, the company noted.
The company still holds three onshore coal bed methane production sharing contracts in South Sumatra and plans to integrate them to create a hub catering to Indonesia’s expanding energy market.
NuEnergy said in a separate statement that it will now focus on Tanjung Enim, its most advanced asset. The company had secured approval for its plan of development from Indonesia’s Ministry of Energy and Mineral Resources in June 2021 for the gas field.
The development plan features 209 wells, covering 13% of the total Tanjung Enim acreage, with certified reserves estimated at about 164.89 billion standard cubic feet. Production is set to start at one million standard cubic feet per day.
NuEnergy finalised the terms with PT Perusahaan Gas Negara Tbk, one of Indonesia’s largest publicly listed gas distributor and transporter, for the sale and purchase of coal bed methane in December 2024.
A definitive agreement will be signed once the gas allocation and price determination have been approved by the Indonesian government, NuEnergy added.
At noon break, Globaltec was unchanged at 46 sen, valuing the group at RM123.8 million.