Conrad's Mako Field Plan Gets Indonesian Okay
The Indonesian energy ministry has approved Conrad Petroleum's development plan for the Mako gas field, which it originally submitted in August 2018 and re-submitted under the gross split regime in January 2019, it said March 11.
Mako is in the Duyung production sharing contract, which is wholly owned by West Natuna Exploration (WNEL) owned by Singaporean Conrad (90%), and by AIM-listed but Western Australia-based Empyrean Energy (10%).
Conrad has also announced the conversion of the Duyung PSC from the cost recovery scheme to the gross split scheme. The amended PSC was agreed by Conrad and the government of Indonesia in January this year.
Conrad CEO Miltos Xynogalas said that the approval is an important milestone in the maturation of the Mako gas field. “This step advances the project and provides the certainty necessary for Conrad to conclude gas sales contracts and finalise access to evacuation routes. In addition, it allows Conrad to continue exploring within the Duyung PSC, and acreage with several identified leads and prospects and a confirmed petroleum system,” Xynogalas said.
The Duyung PSC is in the offshore Indonesian waters of the South China Sea, near the West Natuna Transportation System (WNTS), a gas pipeline which now supplies 400mn ft³/day to Singapore. In June 2017, WNEL drilled the successful Mako South-1 exploration well. A November 2018 resource audit by Gaffney Cline & Associates reported contingent (2C) resources of 276bn ft3 in the Mako gas field.
Additionally, junior partner Empyrean said the PSC would last until 2037 which reduces risk and paves the way for appraisal later in the year that can increase resources at Mako and test the deeper Tambak prospect.