NuEnergy Gas Limited (ASX:NGY) Announces Gas Sales Agreement Finalisation
Agreement Finalisation
NuEnergy Gas Limited has finalised the terms of a Gas Sales and Purchase Agreement (GSPA) with PT Perusahaan Gas Negara (PGN) for the Tanjung Enim Early Gas Sales Initiative. This agreement follows the Heads of Agreement signed between the two parties, which was organised under the guidance of Indonesia’s Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) by 31 December 2024.
Production Sharing Contracts
NuEnergy holds a 45% participating interest in the Tanjung Enim Production Sharing Contract (PSC), operated by its subsidiary Dart Energy (Tanjung Enim) Pte Ltd. SKK Migas has approved NuEnergy’s application for gas allocation and price determination to the Ministry of Energy and Mineral Resources (MEMR). Once MEMR grants final approvals, NuEnergy and PGN are set to sign the GSPA.
Ongoing Operations
NuEnergy continues to advance its exploration and production activities. The company is preparing to commence drilling site preparations as necessary land acquisition has been completed. The procurement of essential long lead items for drilling and production is also in progress.
In the Muralim PSC, which NuEnergy operates with a 100% interest, the dewatering process is underway alongside a workover on the MU-006 well to expedite gas production data collection.
At Muara Enim II and Muara Enim PSCs, NuEnergy is actively seeking extensions for exploration periods and has submitted environmental permit applications awaiting verification from the Ministry of Environment and Forestry.
Company Commitment
NuEnergy remains focused on transitioning its unconventional gas assets towards development and production stages, aiming to establish itself as a key gas producer in Indonesia.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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