NuEnergy Gas Secures $88 Million Field Service Contract With Beijing Energy Linking
NuEnergy Gas (ASX:NGY) signed a fully funded $88 million field service contract with Beijing Energy Linking (BEL) to accelerate development of its Tanjung Enim in South Sumatra, Indonesia, according to an Australian bourse filing on Tuesday after market hours.BEL will act as the lead engineering, procurement, construction, and commissioning contractor overseeing drilling, construction, testing, and completion of coal bed methane wells, along with associated dewatering activities, with the objective of achieving a sustained production plateau of 24 million standard cubic feet per day, per the filing.The contract runs from Tuesday to the production sharing contract's expiry on Aug. 3, 2039, unless terminated earlier, and will be repaid from allocated gas sales revenue, the filing said.Work will begin once key conditions are satisfied, including execution of a gas sales agreement, completion of front-end engineering design, securing land access and permits, finalization of the work program, and issuance of a notice to proceed, the filing added.
