Asia-focused natural gas exploration and production company — Conrad Asia Energy — has announced a strategic partnership with PT Perusahaan Gas Negara Tbk (PGN) — the gas subsidiary of Indonesia’s national oil company, PT Pertamina (Persero).
The collaboration has been formalised through a Memorandum of Understanding (MoU) aimed at enhancing the gas supply and infrastructure development in Indonesia.
Under the terms of the MoU, Conrad and PGN have agreed to jointly explore and develop the gas resources from Conrad’s two offshore Aceh Production Sharing Contracts (PSCs).
These PSCs, known as Offshore North West Aceh (Meulaboh) (ONWA) and Offshore South West Aceh (Singkil) (OSWA), represent a significant step forward in the utilisation of Indonesia’s natural gas resources.
Conrad Asian Energy CEO and Managing Director Miltos Xynogalas said: “Conrad has been evaluating the offshore Aceh areas for more than five years and is excited about their potential. There have been a host of major gas discoveries recently announced offshore Aceh which has brought the region back into international focus for gas exploration companies.
“Our PSCs lie within a proven biogenic gas region containing flow-tested gas discoveries, as well as high-impact deep-water exploratory potential. The shallow-water discoveries are of near-term interest for PGN and appear suitable for commercialisation via small-scale LNG plants—an already proven solution for gas deposits of this size elsewhere in Indonesia.”
Under the terms of the MoU, both parties will embark on a joint study to evaluate the commercialisation potential of the gas resources within these two PSCs.
Initial efforts will concentrate on the existing shallow-water discoveries, with plans to develop and maintain potential small-scale LNG infrastructure and sales.
This collaboration extends to broader cooperation in the development and maintenance of the two blocks.
Recent Competent Person’s Reports (CPRs) have estimated a gross 2C Contingent Resource of 214 billion cubic feet (Bcf) of sales gas, with 161 Bcf net attributable to Conrad, across three of the four discovered shallow-water gas accumulations in the PSCs.
These resources have been ascribed a net present value (NPV) of US$88 million net to Conrad, highlighting the significant economic potential of these projects.
In a move to further delineate the resource size, Conrad plans to acquire 3D seismic data over the cluster of discovered resources in ONWA during this year.
This effort aims to refine the understanding of the resource size, leveraging technology not available during the initial 2D seismic acquisition in the 1970s.
Additionally, the data may reveal new prospects in the vicinity, enhancing the exploration success rate in the region.
To date, the total Prospective Resources identified within the two PSCs amount to 15 trillion cubic feet (Tcf) of recoverable gas, with approximately 11 Tcf net attributable to Conrad.
The deep-water areas of these blocks, containing several multi-Tcf targets, represent a longer-term focus and are drawing interest from major upstream companies.
The MoU with PGN marks a pivotal moment in the journey towards commercialising the discovered resources in the ONWA and OSWA PSCs.
Conrad Asia said the partnership not only highlights the potential of these resources to contribute significantly to Indonesia’s energy landscape but also positions the MoU as a cornerstone of any Plans of Development (POD).
