Conrad Asia Energy secures Mako gas supply deal with Sembcorp
Conrad Asia Energy has entered into a binding agreement with Singapore’s Sembcorp Gas to supply natural gas from the Mako gas field in Indonesia, the company announced on September 2. Conrad holds a 76.5% participating interest in the Mako field, the largest undeveloped gas field in the West Natuna Sea, making this agreement a crucial step towards its commercialisation.
The contract, which runs until the end of the Duyung production sharing contract in January 2037, allows for the sale of up to 76bn British thermal units/day of gas, equivalent to approximately 76.9mn m3/day.
Earlier in June, Conrad had also secured a binding gas sales agreement for the domestic portion of Mako gas with Indonesia’s state utility, Perusahaan Gas Negara (PGN), a subsidiary of Pertamina.
With both the Sembcorp agreement and the domestic market obligation with PGN in place, all of Mako’s current gas contingent resources are now committed to gas buyers. Conrad stated that the completion of these deals represents a "significant milestone" towards reaching a final investment decision (FID) for the Mako project, which is expected in the fourth quarter of 2024.
The Mako gas field was discovered in 2016, and since that time the resource has been delineated through successful appraisal drilling. It received formal approval from the government of Indonesia for the revised plan of development in late 2022.
Duyung PSC is operated by WNEL, a wholly-owned subsidiary of Conrad Asia Energy, which also operates the offshore Mangkalihat PSC in North Kalimantan province. WNEL holds a 76.5% interest in the licence, with Empyrean owning 8.5% and Coro Energy owning 15%.