Conrad Asia Energy has completed its transformation from an exploration and appraisal company into a fully funded, fully contracted gas developer, anchored by the Mako Gas Project in Indonesia’s South Natuna Sea.
The transition follows the company’s final investment decision on 3 March 2026 and represents a pivotal step toward delivering first gas by the fourth quarter of 2027.
Mako is the largest undeveloped gas field in the South Natuna Sea and forms the cornerstone of Conrad’s growth strategy.
The field holds 330 billion cubic feet (Bcf) of gross 2P reserves, with 170 Bcf net to Conrad.
Its gas stream is 98 per cent methane, a quality that underpins the project’s commercial attractiveness and reservoir deliverability.
The development plan calls for six subsea wells tied back to a moored production unit with onboard compression and processing.
Gas will be transported to Batam via the existing West Natuna Transportation System.
Production infrastructure has been designed for a 20-year operational life with a nominal design capacity of 172 million standard cubic feet per day.
Plateau production of approximately 120 mmscfd is expected to be sustained for six to seven years following first gas, with 112 mmscfd targeted by January 2028.
Execution of the Mako project is well advanced.
More than US$280 million of the total US$320 million capital expenditure budget had been contracted by the end of the first quarter of 2026.
Key awards cover the drilling rig, subsea umbilicals and risers with flowlines, the moored production unit, conductor, compressors, subsea wellheads, Christmas trees, subsea control systems, linepipe and completions.
Overall, more than 80 per cent of project capex has already been committed.
Development financing covers capital expenditure, working capital and contingencies, with no additional equity funding anticipated for the Mako development.
Nations Natuna Barat, a member of Indonesia’s Arsari Group, is funding its 75 per cent share of expected development costs directly, while also carrying Conrad subsidiary WNEL’s 25 per cent portion through Phase 1 under a Carry Loan Agreement.
That loan is repayable from WNEL’s share of production revenues.
Conrad retains a 22.875 per cent effective economic interest in the Duyung PSC following completion of the farm-down and related transactions.
One hundred per cent of Mako’s gas volumes are contracted to PLN EPI, the offtake arm of Indonesia’s state electricity utility, placing the project in a strong commercial position ahead of first production.
The offtake arrangement is strategically timed.
PLN forecasts Indonesian gas demand to grow approximately 60 per cent over the next decade, rising from around 1,600 mmscfd to 2,600 mmscfd as the country seeks to reduce reliance on coal and oil, which currently account for approximately two-thirds of its energy supply.
Mako’s location positions it directly within the fastest-growing energy consumption region in the world.
Beyond the project itself, Conrad is progressively monetising its stake through a structured cash consideration arrangement.
Conditions precedent for the Nations Natuna Barat PI Transfer became effective on 23 February 2026, triggering receipt of the first US$5 million tranche of an agreed US$16 million consideration.
A further US$4 million is payable upon completion of the remaining Indonesian regulatory approvals, with the final US$7 million due at first commercial production.
Conrad also expects sunk-cost recovery from production revenues over the life of the PSC.
The company’s longer-term growth pipeline centres on two operated production sharing contracts in offshore Aceh totalling approximately 20,000 square kilometres.
Those assets include three shallow-water gas discoveries with a 2C resource of 216 Bcf sales gas and approximately 15.8 trillion cubic feet of gross unrisked prospective resources identified across around 48 deep-water leads.
A 500-square-kilometre 3D seismic acquisition programme has been awarded and is planned to commence in the third quarter of 2026, with farm-out discussions ongoing to advance commercialisation.
