NuEnergy Awaits Regulatory Approval Amid Key Production Preparations

Finalizing Commercial Agreements

NuEnergy has reached a significant milestone by finalizing the terms of the Gas Sales and Purchase Agreement (GSPA) for its Tanjung Enim Early Gas Sales Initiative. The agreement, struck with PT Perusahaan Gas Negara (PGN), a subsidiary of Indonesia's state energy giant PT Pertamina, positions NuEnergy to supply coal bed methane gas to a major local distributor. This deal follows a Heads of Agreement and was completed under the oversight of SKK Migas, Indonesia's upstream oil and gas regulator.

While the GSPA terms are settled, the contract signing awaits formal approval from the Ministry of Energy and Mineral Resources (MEMR), which is currently reviewing NuEnergy's application for gas allocation and pricing. This regulatory step is critical to unlocking the commercial pathway for NuEnergy’s gas sales.

Advancing Toward Production

In parallel with commercial negotiations, NuEnergy is progressing operationally. The company has completed quality control inspections and procured several long lead items essential for drilling and production activities. These items have arrived in Indonesia and are undergoing customs clearance, with drilling site preparations set to commence once land acquisition processes conclude.

This operational momentum is particularly focused on the Tanjung Enim Production Sharing Contract (PSC), where NuEnergy holds a 45% interest and operates through its subsidiary Dart Energy (Tanjung Enim) Pte Ltd. The project is transitioning from exploration to development, with the Plan of Development (POD) now complete and front-end engineering and design underway.

Progress Across Other Assets

Beyond Tanjung Enim, NuEnergy is actively managing its other South Sumatran PSCs. At the Muralim PSC, where NuEnergy holds 100% interest, the company is accelerating the dewatering process, a critical step to enhance gas production rates, by planning a workover on well MU-006. Meanwhile, at the Muara Enim PSCs, NuEnergy is navigating environmental permitting processes, having submitted revised reports to Indonesia’s Ministry of Environment and Forestry and awaiting verification.

Additionally, NuEnergy secured an extension for the exploration period at Muara Enim II PSC until September 2025, providing more runway to evaluate and develop these unconventional gas assets.

Strategic Outlook

NuEnergy’s strategy centers on integrating its four onshore coal bed methane PSCs in South Sumatra into a cohesive gas hub, aimed at supplying sustainable clean energy to Indonesia’s growing market. The company’s focus on moving assets from exploration through to production and commercialization reflects a clear intent to generate shareholder value and fund future growth initiatives.

As Indonesia’s energy demand continues to rise, NuEnergy’s pioneering role in the country’s clean energy sector positions it well to capitalize on emerging opportunities. However, the pace of regulatory approvals and operational execution will be key determinants of how quickly these projects translate into revenue streams.