KUALA LUMPUR: Globaltec Formation Bhd's 70%-owned subsidiary NuEnergy Gas Ltd is collaborating with PT Beijing Energy Linking (PT BJEL) to develop its coalbed methane (CBM) Production Sharing Contracts (PSCs) in South Sumatra, Indonesia.
In a statement, the group said Australia Stock Exchange-listed NuEnergy will appoint PT BJEL as the lead engineering, procurement, construction and commissioning contractor for the development of the Tanjung Enim PSC and Muralim PSC.
PT BJEL will finance 100% of the field development works at a capped contract price.
Repayment of contract costs will be made through future gas sales, to be agreed between NuEnergy and PT BJEL, and formalised within the relevant PSC EPCC contracts.
The collaboration will initially focus on the full implementation of Tanjung Enim POD 1.
The field development scope includes, among other activities, the drilling of vertical and horizontal wells,
construction of surface facilities and installation of in-field pipelines.
The scope will then cover all
integration and testing required to achieve first gas and a ramp-up to a sustainable plateau production rate, as approved under the POD.
NuEnergy CEO Lim Beng Hong said the agreement is a major milestone for NuEnergy, providing the funding certainty and execution capability required to progress Indonesia’s first CBM POD from early gas sales into full-scale production.
“The appointment of PT BJEL as Lead EPCC contractor, together with their commitment to fully fund field development at a capped cost, materially de-risks delivery of Tanjung Enim POD 1 and enables a seamless transition from our current early gas production of around 1 MMSCFD to a targeted plateau rate of 25 MMSCFD.
“This partnership brings together NuEnergy’s first-mover position in Indonesian CBM with PT BJEL’s engineering, construction and financing capabilities, allowing us to focus on execution, commercialisation and long-term value creation for shareholders.”
