Australian NuEnergy Gets OK for Indonesia CBM Project

Australia listed NuEnergy Gas has received approval from the Indonesian oil and gas regulator SKKMigas to prepare the initial development plan for the Tanjung Enim production sharing contract (PSC), it said August 3.

NuEnergy said it will look to submit the plan for the coalbed methane project by end-2017 to Indonesia's ministry of energy and mineral resources.

The proposed concept for the initial plan for operation and development (POD) covers a development in two target areas, in the north and north‐west of the PSC where NuEnergy has focused exploration, plus drilling and pilot production activities over the last eight years.  

“Our two partners, Pertamina and Bukit Asam, two leading state‐owned energy and resources companies, have both given their full commitments to the POD preparation and to the long‐term development of the PSC,” NuEnergy said.  It did not give an indication of possible production volumes.

Tanjung Enim is located in Muara Enim Regency, South Sumatra province. This PSC was awarded by SKK Migas in August 2009 for 30 years. The exploration period under the PSC is six years up to August 2015 and was given the extension for another four years up to August 2019.

Shardul Sharma