NuEnergy Gas to Explore for CBM in Indonesia

Australia's NuEnergy Gas has signed a memorandum of understanding (MoU) with Pertamina subsidiary, Pertamina Gas, to explore coalbed methane (CBM) at Tanjung Enim block in Indonesia, it said September 28.

Gas produced from the block will be supplied to customers in Sumatra of Pertamina Gas, NuEnergy’s joint venture partner in Tanjung Enim block.

Under the MoU, both companies have agreed to exchange information and to jointly evaluate the economic viability of CBM supply from Tanjung Enim block’s initial plan of development.

The MoU is an important step towards negotiation of a heads of agreement relating to gas supply that would include main commercial terms such as supply period, supply volume and price, NuEnergy said.

NuEnergy has received government approval to prepare the plan of development for Tanjung Enim block. The proposed concept for the initial plan of development plans for the development in two target areas, in the north and north-west of the block where NuEnergy has focused exploration, drilling and pilot production activities over the last 8 years. The plan of development is expected to be submitted to Indonesia authorities by end of 2017.

Shardul Sharma