Oz EWC Gets Indonesia PSC Extension

Australia-listed Energy World Corporation November 29 said it has secured a 20-year extension to the production sharing contract for the Sengkang gas field in Indonesia.

The extension starts from October 2022. EWC has pledged a five-year commitment of $88mn and said it will enter into a business to business arrangement with a local Indonesian venture partner, to be approved by Indonesian regulator SKK Migas, within six months.

Brian Allen, executive director of EWC, said, “We are delighted with this result. We have been approached by a number of potential Indonesian ventures partners and look forward to finalising arrangements over the coming months. We will continue to operate the Sengkang gas field and power plant under the existing contracts, and with this extension in place, we will be in a position to commence discussions on other contracts for the monetisation of this gas field beyond 2022, together with providing increased reserves for our LNG facility.”

EWC said it is in discussions with PLN over an offtake agreement for LNG sales from the Sengkang LNG facility, which had been delayed due to volatile LNG prices. The 2 million metric tons/year Sengkang LNG project is 80% complete, EWC said.