Conrad Asia Energy signs terms for sale of Mako gas
Conrad Asia Energy on March 29 announced the signing of binding key terms for the sale of the domestic portion of Mako gas with Perusahaan Gas Negara (PGN), the gas subsidiary of Indonesia state energy company Pertamina.
Under the agreed key terms, Conrad Asia Energy and PGN will proceed to formalise a fully termed gas sales agreement (GSA) for the domestic portion of the gas extracted from the Mako field within the Duyung production sharing contract (PSC) situated in the West Natuna Sea, offshore Indonesia.
The execution of this GSA is contingent upon the construction of a pipeline connecting the West Natuna Transportation System with the domestic gas market in Batam. This initiative aligns with Conrad's domestic market obligation outlined in Mako's revised plan of development.
The sales volumes stipulated in this GSA will encompass approximately 29.5% of Mako's total sales gas volumes until the PSC's expiration in January 2037. The remaining volumes will be sold to Singapore, with which Conrad Asia Energy signed a term sheet in 3Q 2023, and is currently progressing towards finalising a GSA in the coming months.
“These key terms are a very important milestone paving the way for a fully termed gas sales agreement and brings the company a step closer to the FID for the Mako development,” Conrad Asia Energy's CEO, Miltos Xynogalas, said.
“This agreement, combined with Conrad’s recent signing of a memorandum of understanding for its Aceh gas resources also with PGN, will further advance the government of Indonesia’s ambition to meet the fast-growing energy needs of the country,” he added.
The FID for the Mako development is slated for midyear 2024.
The Mako gas field was discovered in 2016, and since that time the resource has been delineated through successful appraisal drilling. It received formal approval from the government of Indonesia for the revised plan of development in late 2022.
Duyung PSC is operated by WNEL, a wholly-owned subsidiary of Conrad Asia Energy, which also operates the offshore Mangkalihat PSC in North Kalimantan province. WNEL holds a 76.5% interest in the licence, with Empyrean owning 8.5% and Coro Energy owning 15%.