Conrad pens PSCs for two Indonesian offshore gas blocks
Conrad Asia Energy has signed production sharing contracts (PSCs) for two blocks located offshore northwest and southwest of the Aceh Province of Indonesia, the company said on January 6.
The company will operate and hold 100% of North West Aceh (Meulaboh) and South West Aceh (Singkil) PSCs. “These acquisitions are consistent with Conrad’s core strategy of developing assets with the potential to supply gas to the rapidly growing South East Asia markets,” it said.
Meulaboh and Singkil were offered under the Indonesia Petroleum Bidding Round (IPBR) 2022 first licencing round, in which Conrad submitted bids in September 2022.
“Due to the deep-water environment and the lack of exploration in large parts of each block, notwithstanding the existing discoveries in the shallow water, the blocks are deemed by the Indonesian authorities as 'frontier' with corresponding fiscal arrangements which are attractive and favourable compared to Indonesian PSCs over blocks in more mature areas,” Conrad said.
The total committed work programme for each PSC is $15mn and includes geological studies for 2023, 500 km2 of 3D seismic acquisition for 2024 and the drilling of a well for 2025. The costs of the 2023 commitments will be funded from the company’s recent public offering on the Australian Securities Exchange.
The costs for subsequent activities will be from various sources including farm-in partners as the PSCs are matured and the commencement of cash flow from the Mako gas field, the company added.