Key Gas Sales Agreement signed

Conrad Asia Energy has made significant progress in the development of the Mako Gas field, located offshore Indonesia in the West Natuna Sea. The company recently signed a pivotal Gas Sales Agreement (GSA) with Perusahaan Gas Negara (PGN), Indonesia’s national gas company and a subsidiary of Pertamina. This agreement is a crucial step towards securing the final investment decision (FID) for the project, which is expected in the fourth quarter of 2024.

Mako Field's domestic and export plans

The signed GSA covers approximately 29.5% of Mako's Gas output for the domestic market, ensuring a steady supply to Indonesia's Batam island across the Malacca Strait. The remaining 70.5% of the Gas volumes are being negotiated with Singapore’s Sembcorp Gas for export purposes. This strategic split ensures that both domestic needs and international market demands are addressed, highlighting the project's broad impact on the region's Energy landscape.

Significant resource estimates

The Mako Gas field is the largest undeveloped Gas field in the West Natuna Sea, boasting contingent resources of 376 billion cubic feet (Bcf) of Gas, with 187 Bcf net attributable to Conrad. This massive resource potential positions the Mako field as a key player in Southeast Asia’s Energy sector. Production from the offshore field is slated to commence in 2026, promising to boost regional Gas supply significantly.

Path to final investment decision

The recent agreements are pivotal in demonstrating the financial viability and sustainability of the Mako project. Conrad’s CEO, Miltos Xynogalas, emphasised that these GSAs are essential documents that underpin the project’s value and financial stability. With the domestic GSA now in place, Conrad is prepared to finalise the export GSA with Sembcorp Gas, aiming for a project sanction by Q4 2024.

Future developments and collaborations

Conrad is not only focusing on the Mako field but is also expanding its operations in Indonesia. The company plans to conduct 3D seismic surveys later this year to further explore its Gas discoveries offshore Aceh. These initiatives are part of Conrad's broader strategy to enhance its footprint in the Southeast Asian Energy market, leveraging partnerships and new resource finds.

Conrad's strategic position in the Energy market

Conrad Asia Energy's advancements in the Mako Gas field project underscore its commitment to meeting both domestic and international Energy demands. The strategic GSAs with PGN and Sembcorp Gas, along with planned future developments, position Conrad as a leading player in the Southeast Asian Oil and Gas industry.

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