Oz NuEnergy Hikes Interest in Indonesia PSC

Australia-listed coalbed methane explorer NuEnergy Gas January 23 said it is hiking its participating interest in Muralim production sharing contract (PSC) in Indonesia by entering into a withdrawal and assignment agreement with Medco CBM Pendopo.

NuEnergy is the operator of the Muralim PSC and holds a 50% participating interest, with Medco holding the other 50%. Agreement has been reached to transfer the 50% participating interest to NuEnergy subject to government approval, the company said.

As per the agreement, Medco will immediately assign all its rights, obligations and liabilities under the PSC and joint operating agreement (JOA) relating to its withdrawing participating interest that will be transferred to NuEnergy.

The withdrawal and assignment is at no cost to Medco and NuEnergy apart from Medco’s obligation under the PSC and JOA to settle all its outstanding due and unpaid cash calls to meet its expenditure obligation, NuEnergy said.

Muralim PSC is located about 70 km and 140 km from industrial cities of Prabumulih and Palembang respectively. It is also close to major gas trunk lines to Java market.