Conrad inks gas deal for Mako development in Indonesia

SINGAPORE, September 2, 2024 – Australian independent Conrad Asia Energy has signed a gas sale agreement (GSA) with Singapore’s Sembcorp Gas for the export portion of the natural gas from the Mako gasfield, Conrad announced on Monday.

With this agreement and the gas sold under a separate domestic market obligation (DMO) with Indonesian gas company PGN, all of Mako’s current gas contingent resources have been committed to buyers, bringing Conrad closer to the FID for the project, which is expected in Q4 2024.

The Mako gasfield is located in the Duyung PSC in the Riau Islands province, in Indonesian waters in the West Natuna area, approximately 400 kilometres northeast of Singapore. It is estimated to hold 2C contingent resources of 10.6 bcm (376 bcf). Conrad holds a 76.5% operated interest in the Duyung PSC via its wholly owned subsidiary West Natuna Exploration Limited.

“The GSA between the Mako Joint Venture, the Indonesian Government and Sembcorp is the most significant event in the company’s history as it has progressed Mako from an exploration concept in 2017 to a gas development project in 2024. This GSA is the essential document that underpins the financial viability and the value of the project,” said Miltos Xynogalas, Conrad managing director and CEO.

Contract terms for the GSA extend until the end of the Duyung PSC in January 2037 and stipulate the sale of up to 2.2 mcm (76.9 mcf) per day of gas, which could increase by an additional 1 mcm (35.4 mcf) should a planned tie-in pipeline for the Indonesian domestic not materialise, causing DMO sales to not take place.

The financial terms of the deal were not disclosed. Conrad expects Mako to be the first of several gas projects it will bring into commercial production from its existing portfolio of discoveries, which also include gas resources in the Aceh offshore province.

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