KUALA LUMPUR (Aug 24): Globaltec Formation Bhd’s (KL:GLOTEC) 70%-owned subsidiary NuEnergy Gas Ltd received 12- to 18-month extensions to the exploration periods of three of the company’s coal bed methane production sharing contracts (PSCs) in South Sumatra.
The Australian exchange-listed company received the approval for the extensions on Aug 21 from the Indonesian Ministry of Energy and Mineral Resources, Globaltec announced in an exchange filing on Monday.
Under these approvals, NuEnergy’s Muralim and Muara Enim PSCs were granted an additional 12 months from Aug 13 to submit plans of development proposals, while its Nuara Enim II PSC was granted an additional 18 months from Aug 13.
"The approvals establish the next step for the three PSCs to progress from exploration towards development stage and opportunities to establish an integrated South Sumatra CBM Hub, together with NuEnergy's Tanjung Enim PSC which is already advancing towards gas sales in 2027," the company said in a bourse filing on Monday.
In a separate filing, the group said NuEnergy has begun construction of a compressed natural gas mother station and preparation work for the NuEnergy early production facility (EPF) at Tanjung Enim in South Sumatra, Indonesia.
This is part of its contract with PT Perusahaan Gas Negara Tbk (PGN), which was secured on Dec 17, 2025.
PGN is an Indonesian natural gas distributor and buyer of NuEnergy’s natural gas under the early gas sales initiative.
Construction works involve the building of EPF, which will receive natural gas from four existing natural gas wells before delivering it to the connecting mother station, which will then be transported to PGN’s Pagar Dewa Station to be supplied to Indonesia’s regional gas network.
This is part of NuEnergy’s strategy of commercialising gas production in Tanjung Enim’s plan of development 1, Indonesia's first approved commercial coal bed methane project led by NuEnergy, established on June 17, 2021.
Tanjung Enim's plan of development, or POD 1, represents the first coal bed methane POD in Indonesia and covers the development in two target areas to achieve 25 million metric standard cubic ft per day (MMSCFD) of gas production, in the north and south of the contract area covering ~33km2 (or 13% of the total acreage of the Tanjung Enim PSC).
Tanjung Enim POD 1’s gas production of 25 MMSCFD is being undertaken in a two-phase approach, the first phase being the early gas sales initiative of one MMSCFD and the second phase of 24 MMSCFD will be carried out with a fully funded field service contract with PT Beijing Energy Linking.
Globaltec’s share price was unchanged on Monday morning at 97 sen, with a market capitalisation of RM259.7 million.