Muara Enim PSC Update, page-7

Extracted from NGY's Half-Year report ended December 2023 on Muara Enim PSC -

NuEnergy has received an acknowledgement letter from SKK Migas on 18 January 2021 that:
i) confirms the discoveries of natural gas;
ii) acknowledges the completion of exploration firm commitments by NuEnergy; and
iii) allows NuEnergy to submit a plan of development within the next 3 years from 18 January 2021.

As the Indonesian government has indicated a proposal to increase the contractor’s share of the revenue under a gross split scheme, as announced jointly by SKK Migas and MEMR in May 2023 and VAT exemption accorded to contractors under gross split schemes, NuEnergy had applied for conversion of its PSC from a cost-recovery scheme PSC to a gross split based PSC on 3 August 2023. This conversion will not only bring additional financial benefits but also allow greater flexibility in carrying out NuEnergy’s development activities. NuEnergy has received a positive response from SKK Migas, indicating this application will be processed after the release of the detailed guidance and rules of the new simplified gross split scheme. A workshop and field visit were held with SKK Migas and Migas from 8 November to 9 November 2023 to discuss NuEnergy’s request for gross split conversion and extension of the exploration period. SKK Migas and Migas have both indicated that they will recommend MEMR to extend the exploration period by 20 months. Currently, the applications are awaiting approval from MEMR.