Globaltec unit inks deal for Sumatra gas project

PETALING JAYA: Globaltec Formation Bhd’s 70%-owned subsidiary NuEnergy Gas Ltd is collaborating with PT Beijing Energy Linking (PT BJEL) to develop coalbed methane 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 (EPCC) contractor for the development of the Tanjung Enim PSC and Muralim PSC.

PT BJEL will finance 100% of the field development work 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 area.

The field development includes, among other activities, the drilling of vertical and horizontal wells, construction of surface facilities and installation of 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 area.

NuEnergy chief executive 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 coal bed methane project from early gas sales into full-scale production.

“This partnership brings together NuEnergy’s first-mover position in Indonesian coal bed methane with PT BJEL’s engineering, construction and financing capabilities, allowing us to focus on execution, commercialisation and value creation for shareholders.”