Conrad pens term sheet for supply of Mako gas
Conrad Asia Energy has signed a non-binding term sheet with Singapore's Sembcorp Gas for a long-term gas sales agreement for the Mako gas field, a partner in the project Coro Energy announced on September 12. The term sheet has been endorsed by the Indonesian petroleum upstream regulator, SKK Migas.
The term sheet relates to the sale of Mako gas from start of production until 2037 for a total sales gas volume of about 293bn ft3 with the potential to increase to 392bn ft3. Gas sales will be priced against Brent oil.
The parties to the term sheet have also agreed to negotiate a definitive gas sales agreement by December 31, 2023. Mako is licensed through the Duyung production sharing contract (PSC). It is estimated to contain 413bn ft3 of best-case contingent resources potential.
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 Petroleum's Indonesia-focused unit 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%.