Jakarta: Globaltec Formation Bhd’s 70 per cent-owned subsidiary, NuEnergy Gas Ltd, anticipates generating its first revenue from a coalbed methane (CBM) project in Indonesia this year. The venture is expected to bring in approximately US$2 million, supported by the initial gas production from the Tanjung Enim Plan of Development 1 (POD 1) located in South Sumatra.
According to BERNAMA News Agency, this development follows a production sharing contract (PSC) agreement between NuEnergy and China-based PT Beijing Energy Linking (PT BJEL). The agreement is designed to facilitate a seamless transition from early gas sales of about one million standard cubic feet per day (MMSCFD) to a significantly higher production rate of 25 MMSCFD, as approved under the Tanjung Enim POD 1.
Globaltec group executive chairman Tan Sri Goh Tian Chua announced that after a decade of exploration, Globaltec has successfully completed four pilot wells, with encouraging results. “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 stated following the PSC agreement signing.
Under the collaboration agreement, NuEnergy will assign 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 the entirety of the field development works at a capped contract price, with repayment through future gas sales, subject to terms yet to be finalised under the EPCC contracts.
Goh further mentioned that PT BJEL has shown a commitment to invest approximately US$120 million to speed up drilling activities, which will lead to more wells 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 added.
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. This approval is a significant milestone as it marks 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 about 13 per cent of the total PSC area.
The statement also highlighted that CBM is a cleaner energy source, burning with significantly fewer air pollutants compared to coal and emitting less carbon dioxide per unit of energy, making it an important transition fuel.
Meanwhile, NuEnergy chief executive officer Lim Beng Hong described the collaboration with PT BJEL as a transformational step for both 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.