Conrad Asia Energy has entered into a binding Gas Sales Agreement (GSA) for the sale and purchase of the domestic portion of Mako gas with PT Perusahaan Gas Negara (PGN), the gas subsidiary of PT Pertamina (Persero), the national oil company of Indonesia.
The GSA with PGN for gas from the Mako gas field, in which Conrad has a 76.5% participating interest, is an important step in the commercialization of the Mako gas field, said to be the largest undeveloped gas field in the West Natuna Sea, offshore Indonesia.
Coro Energy and Empyrean Energy are partners in the development, holding 15% and 8.5% working interest, respectively.
The total contracted gas volume under the agreement is up to 122.77 trillion British Thermal Units (TBtu) with estimated plateau production rates of 35 billion British Thermal Units / day (BBtud). Other terms of the GSA remain confidential.
A separate GSA is being negotiated for the remainder of the Mako gas resource which is targeted to be exported to Singapore, according to Conrad, an ASX-listed Asia-focused natural gas exploration and development company.
The West Natuna Sea gas gathering system is already connected to Singapore. PGN is proceeding with planning a tie-in line to the island of Batam across the Malacca Straight that will connect the Natuna Sea to the Indonesian market.
Completion of both GSAs will be significant milestones on the path to a Final Investment Decision (FID) for the Mako project targeted for fourth quarter of 2024.
“Conrad has been working closely with PGN for the commercialization of Mako gas and is delighted to have progressed this to a formal GSA. This GSA is a significant milestone on the road to FID which is targeted for the fourth quarter of the current year,” said Miltos Xynogalas, Conrad’s Managing Director and Chief Executive Officer.
The Mako field contains 2C Contingent Resources (100%) of 376 billion cubic feet (Bcf), and is scheduled to begin production in 2026. The West Natuna Sea has been supplying Singapore with natural gas for more than two decades and Mako is expected to extend this supply for at least another decade.