Significant shale gas resource at NuEnergy?s PSCs in Sumatra confirmed
Monday, October 8 2012 - 02:57 AM WIB
The first independent evaluation conducted by the Bandung Institute of Technology (ITB) confirmed the presence of significant shale gas resource at Australia-listed NuEnergy Gas Ltd?s Muara Enim, Muara Enim II and Rengat PSCs in South Central Sumatra.
The company said in a statement Monday that as an existing PSC holder in Indonesia, it has pre-emptive rights to develop and commercialize shale gas resources in their existing PSCs.
This additional undeveloped resource, will be further evaluated by NuEnergy by joint study groups with the Government of Indonesia and has the potential to add further economic value for the company.
?NuEnergy has the capability and advantage to commercialize these additional resources considering the strategic location of the PSCs,? the company said.
It pointed out that all of NuEnergy?s Indonesian PSCs are adjacent to major gas pipeline infrastructure connected to the following significant undersupplied gas markets:
? The Singapore gas pipeline which connects NuEnergy PSCs to the +L1 billion cubic feet (BCF) per day Singapore gas market;
? The 425 million standard cubic feet per day (mmscfd) Chevron Dun Steam Flood project located in Sumatra and The pipeline to the Jakarta / West Java , which has a capacity of 440 mmscfd.
? The Singapore and Dun Steam Flood gas markets offer the opportunity of oil equivalent gas prices between 75 and 95 percent of indexed crude oil prices.
Independent shale Gas-In-Place (GIP) Estimate ? 6.1 Trillion Cubic Feet (TCF)
| PSC | Shale gas GIP (BCF) | NuEnergy participation factor (%) |
| Muara Enim | 1786 | 40% |
| Muara Enim II | 2678 | 30% |
| Rengat | 1654 | 100% |
| Total | 6118 | ? |
Editing by Reiner Simanjuntak