NuEnergy to submit Tanjung Enim POD to ministry end of 2017
Wednesday, November 1 2017 - 01:40 AM WIB
ASX-listed NuEnergy Gas Limited said it has started drafting the plan of development (POD) of the Tanjung Enim PSC in Indonesia?s South Sumatra Province, and hopes to submit the POD to the Indonesian Ministry of Energy and Mineral Resources by the end of this year.
The company said in a statement on Tuesday that it anticipates approval of the POD by the ministry in the first half of next year.
?The POD approval is anticipated during the first half of 2018. Both partners, PT Pertamina and PT Bukit Asam, two leading state-owned energy and resources companies, have given their full commitment to the POD preparation and the long-term development of the PSC,? NuEnergy said.
Preparations toward the POD comes after progress it achieved with the Tanjung Enim PSC Pilot Production Program (TEPPP) where the wells continued to demonstrate production parameters in line with the simulated model for commercial delivery.
With the progress of the TEPPP, NuEnergy held discussions with the upstream oil and gas authority SKK Migas in the last quarter to review the Exploration Status Decision (ESD) as the first step toward the POD preparation.
NuEnergy submitted the ESD report to SKK Migas in July 2017, which consisted of the resources estimate, POD concept and economic evaluation. This report received the approval for POD preparation in August 2017. The POD preparation process has commenced and is anticipated to take approximately 6 months. The process includes field development planning, permits, environmental impact assessment and gas sales negotiation.
In September 2017, NuEnergy executed a Memorandum of Understanding (MOU) with PT Pertamina Gas to investigate the supply of coal bed methane (CBM) gas from Tanjung Enim PSC to Pertamina Gas for distribution to consumers in Sumatra. Pertamina Gas is a subsidiary of PT Pertamina, a state- owned oil and gas conglomerate and one of the joint venture partners for the Tanjung Enim PSC.
Pertamina Gas has a focus on the midstream and downstream gas industry of Indonesia with its primary activity being trading, transportation, processing and distribution and other businesses related to natural gas and their associated products. The MOU is an important step for the negotiation of the Gas Sales and Supply Heads of Agreement to agree on the main commercial terms including supply period, supply volume and price.
The proposed concept for the initial POD plans for the development in two target areas, in the north and north- west of the PSC where NuEnergy has focused its exploration, drilling and pilot production activities over the last 8 years.
Editing by Reiner Simanjuntak