Indonesia has designated NuEnergy Gas Ltd’s Tanjung Enim Production Sharing Contract (PSC) as a National Strategic Project, granting the coal bed methane development greater government support as it moves towards production.
NuEnergy, a 70%-owned subsidiary of Globaltec Formation Bhd, said Indonesia’s Ministry of National Development Planning had notified the company that President Prabowo Subianto had approved the designation, recognising the project’s importance to the country’s energy development priorities.
In a filing with Bursa Malaysia, the company said the status is expected to facilitate closer coordination with the Ministry of Energy and Mineral Resources and other government authorities as it advances the project’s first approved Plan of Development (POD).
The designation is also expected to support coordination on land access, permitting and infrastructure, potentially reducing execution risks and improving schedule visibility for the project.
The Tanjung Enim project in South Sumatra is aimed at increasing Indonesia’s domestic gas supply through the development of coal bed methane resources, while also supporting local employment, skills development and infrastructure investment in the region.
The designation comes as NuEnergy progresses its 25 million standard cubic feet per day (MMSCFD) Tanjung Enim POD 1. Indonesia’s Ministry of Energy and Mineral Resources approved the POD in June 2021 under a gross split scheme, with NuEnergy noting it was the first coal bed methane POD approved in Indonesia.
The plan covers two target areas spanning approximately 33 sq km, or 13% of the Tanjung Enim PSC acreage, with production targeted at 25 MMSCFD.
Separately, Globaltec said NuEnergy is raising A$3.05 million through a private placement of new shares priced at A$0.038 each, to support the development and commercialisation of its gas assets.
The proceeds will primarily fund Tanjung Enim’s early gas sales initiative, or Phase 1, which targets one MMSCFD, followed by Phase 2, involving 24 MMSCFD. The funds will also be used to advance NuEnergy’s three other PSCs and to support working capital.
The placement shares come with one free option for every two shares, exercisable at A$0.06 each over a two-year period.
“Following completion of the placement, Globaltec Group’s equity interest in NuEnergy will be diluted marginally from 70% to 68%. NuEnergy will remain a subsidiary of Globaltec,” the company said.
Globaltec added that the placement is not expected to have any material effect on the group’s earnings and net assets for the financial year ending June 30, 2027.
