Conrad Asia Energy has moved from explorer to developer, completing the transition into a fully funded gas developer through its flagship Mako Gas Project in Indonesia’s South Natuna Sea, with first gas now targeted for the fourth quarter of 2027.
The company reached final investment decision (FID) on the Mako Gas Project on 3 March 2026, formally sanctioning the project for full development.
Development funding covers capital expenditure, working capital and contingencies, with no additional equity raising expected for the development phase.
Mako is the largest undeveloped gas field in the South Natuna Sea and represents Conrad’s anchor project within its broader Indonesian portfolio.
The field holds 330 billion cubic feet of gross 2P reserves, with 170 Bcf net to Conrad, and produces gas that is 98 per cent methane, underlining its high-quality reservoir characteristics.
All gas volumes have been contracted to PLN EPI, Indonesia’s state energy utility, and the field is expected to deliver plateau production of approximately 120 million standard cubic feet per day for six to seven years.
More than US$280 million of the total US$320 million capital expenditure program was contracted by the end of the first quarter of 2026, representing over 80 per cent of committed capex.
Major awards to date span the drilling rig, the mooring and production unit, subsea umbilical and flowline systems, the concrete seabed foundation, linepipe, compressors, subsea wellheads, Christmas trees, subsea control systems, umbilicals, conductors, high-grade steel and completions.
The development plan incorporates six subsea wells tied back to a mooring and production unit with onboard compression and processing.
Gas will be transported to Batam via the existing West Natuna Transportation System.
Production infrastructure is designed for a nominal capacity of 172 million standard cubic feet per day and a 20-year operational life.
Nations Natuna Barat, a member of Indonesia’s Arsari Group, holds 75 per cent of the expected Mako development costs and is carrying the remaining 25 per cent interest held by WNEL through Phase 1 under a carry loan arrangement, which is repayable from WNEL’s share of production revenues.
Conrad retains a 22.875 per cent effective economic interest in the Duyung production sharing contract.
The farm-down to Nations Natuna Barat came into effect in February 2026, triggering the first US$5 million tranche of an agreed US$16 million cash consideration.
A further US$4 million is payable upon completion of Indonesian regulatory approvals, with the remaining US$7 million due at first commercial production.
The project schedule remains in line with prior guidance.
Construction, drilling, fabrication and subsea installation will progress through 2026 and into 2027, with first gas targeted in the fourth quarter of 2027 and plateau production of 112 million standard cubic feet per day targeted by January 2028.
