Globaltec To Generate First Revenue From Indonesian Coalbed Methane Venture This Year

From Nur Aiman Najwa Dzamae

JAKARTA, Jan 8 (Bernama) -- Globaltec Formation Bhd’s 70 per cent-owned subsidiary NuEnergy Gas Ltd expects its coalbed methane (CBM) venture in Indonesia to yield its first revenue of about US$2 million (US$1=RM4.05) this year, driven by initial gas production from the Tanjung Enim Plan of Development 1 (POD 1) in South Sumatra.

This follows the production sharing contract (PSC) agreement signing between NuEnergy and China-based PT Beijing Energy Linking (PT BJEL) to facilitate a seamless transition from early gas sales of approximately one million standard cubic feet per day (MMSCFD) to a materially higher plateau production rate of 25 MMSCFD, as approved under the Tanjung Enim POD 1.

Globaltec group executive chairman Tan Sri Goh Tian Chua said that after 10 years of exploration, Globaltec has completed four pilot wells, and the results have been encouraging.

“We expect production in 2026 to mark the beginning of new revenue for the group, with gas from these initial wells supporting our early commercialisation phase,” he said after the signing of the PSC agreement here today.

Under the collaboration agreement, NuEnergy will appoint PT BJEL as the lead engineering, procurement, construction and commissioning (EPCC) contractor for the development of the Tanjung Enim and Muralim PSCs.

PT BJEL will finance 100 per cent of the field development works at a capped contract price, with repayment to be made through future gas sales, subject to terms to be finalised under the EPCC contracts.

Goh said that under the collaboration, PT BJEL has indicated a commitment to invest around US$120 million to accelerate drilling activities, paving the way for more wells to come onstream beyond the initial four.

“More wells mean more production, and more production means more revenue for the group. With PT BJEL’s expertise and technology, including vertical and horizontal drilling, we are looking at the best way to scale up production efficiently,” he said.

According to Globaltec’s statement, the Indonesian Ministry of Energy and Mineral Resources has approved NuEnergy’s first POD for the Tanjung Enim PSC under a favourable 95:5 contractor-government split scheme.

“The approval marked Indonesia’s first CBM POD, covering the development of 209 wells across two target areas to achieve gas production of up to 25 MMSCFD, within approximately 33 square kilometres, representing around 13 per cent of the total PSC area.

“CBM burns with significantly fewer air pollutants, such as sulfur dioxide, nitrogen oxides, as well as particulates and emits less carbon dioxide per unit of energy than coal, making it an important transition fuel,” it said.

Meanwhile, NuEnergy chief executive officer Lim Beng Hong said the collaboration with PT BJEL marked a transformational step for the company and Indonesia’s emerging CBM industry.

“This agreement provides the funding certainty and execution capability required to progress Indonesia’s first CBM plan of development from early gas sales into full-scale production,” he said, adding that the project would also support Indonesia’s growing domestic energy demand and net-zero ambitions. 

-- BERNAMA