KUALA LUMPUR: Globaltec Formation Bhd's Australia-listed subsidiary, NuEnergy Gas Ltd, is relinquishing the Muara Enim 2 production sharing contract (PSC).
NuEnergy has a 30% participating interest and is the operator of the PSC.
"The relinquishment will have no material impact on NuEnergy’s profit or loss as all related exploration expenditures and penalty costs were fully impaired/provided for in the financial year ended 30 June 2019.
"Additionally, the anticipated restoration cost is expected to be immaterial," said NuEnergy in an announcement to the Australia Securities Exchange.
It added that the relinquishment of Muara Enim PSC 2 provides it with an opportunity to further optimise its coal bed methane (“CBM”) portfolio by prioritising more advanced CBM projects with near termmonetisation potential.
