Extracted from NGY’s latest Quarterly Report December 2023 on...

Extracted from NGY’s latest Quarterly Report December 2023 on Muara Enimtoday

Muara Enim PSC

Dueto the anticipated increase in contractor’s share of gross revenue to 95% underthe revised gross split scheme signalled by the MEMR as mentioned above,NuEnergy has submitted an application to the Special Task Force For UpstreamOil and Gas Business Activities (“SKK Migas”), for the conversion of its MuaraEnim PSC from a cost-recovery scheme to a gross split based PSC.

Thisconversion is expected to underpin a material improvement to the revenueprofile of the project and allow greater flexibility in carrying out NuEnergy’sdevelopment activities. NuEnergy has received a positive response from SKKMigas, indicating this application will be processed after the release of thedetailed guidance and rules of the new simplified gross split scheme.

Aworkshop and field visit were held with SKK Migas and Migas in early Novemberto discuss NuEnergy’s request for gross split conversion and extension of theexploration period. SKK Migas and Migas have both indicated that they willrecommend MEMR to extend the exploration period by 20 months. Currently, theapplication is awaiting approval from MEMR.