The Indonesian Minister of Energy and Natural Resources Arifin Tasrif has approved the gas price and volume allocation for Conrad Asia Energy’s Mako field project within the Duyung Production Sharing Contract (PSC), marking a significant milestone in the project’s development and the country’s energy sector.
This approval, conveyed through an Allocation Letter from the Indonesian Minister of Mining and Natural Resources, sets the stage for Conrad to finalise fully-termed gas sales agreements (GSA).
It signifies a crucial step forward in the commercialisation of the Mako gas field, located in the prolific Natuna Sea, and underscores the project’s contribution towards Indonesia’s ambitious goal to double its gas production by 2030.
The Allocation Letter not only confirms the volumes and prices for gas to be exported and sold domestically but also serves as a foundational document for securing pipeline capacity through the West Natuna Transportation System (WNTS) for the evacuation of Mako gas.
This development is instrumental in advancing the documentation and finalisation of the GSAs, with Conrad working closely with SKK Migas, the Indonesian upstream regulator, and other relevant parties to meet customary conditions precedent.
Conrad’s commitment to the Mako project and its collaboration with Indonesian authorities exemplifies the company’s dedication to supporting Indonesia’s energy independence and sustainability goals.
As Conrad moves forward with finalising the GSAs and further developing the Mako gas field, the company is poised to play a significant role in enhancing Indonesia’s gas production capacity and meeting the growing energy needs of the region.
Conrad Asia Energy Managing Director and CEO Miltos Xynogalas stated that the Minister’s approval combined with the WNTS access agreements are key requirements for a final investment decision on the Mako field development.
“Conrad has made significant progress with the Mako gas project, including securing government approvals, maturing farm down discussions, and pushing forward with debt funding initiatives.
“The injection of capital from the recent successful capital raise has put us in a strong position to conclude the last outstanding issues on achieving the final investment decision,” said Xynogalas.
Conrad Asia Energy currently holds a 76.5 per cent operated interest in the Duyung PSC via its wholly-owned subsidiary West Natuna Exploration Limited.
Duyung is located in the Riau Islands Province, Indonesian waters in the West Natuna area, approximately 100 kilometres to the north of Matak Island and about 400 kilometres northeast of Singapore.
