Conrad confirms reallocation of offshore Mako Field gas to Indonesian utility

Conrad Asia Energy has signed a gas sales agreement (GSA) for the Mako Field in the Duyung PSC offshore western Indonesia with PT PLN Energi Primer Indonesia (PLN EPI), a subsidiary of state-owned power utility PLN Persero.

All volumes produced will be supplied to Indonesia’s domestic market. The binding agreement covers the current PSC period through January 2037 and allows for the sale of up to 111 billion Btu per day.

According to Conrad, PLN Persero operates more than 7,000 power plants supplying over 89 million customers and sells more than 288,000 GWh/year of electricity. The Mako gas price will be linked to the Indonesian crude price.

PLN EPI will finance and construct a new 5- to 7-km pipeline connecting the main West Natuna Gas line to Pemping Island with an onward link to Batam, at no cost to Conrad.

Previously negotiated GSAs to sell Mako gas to PT Perusahaan Gas Negara and Singapore-based Sembcorp Gas have been terminated.

The new agreement should support Conrad’s farm-out arrangements for the Duyung PSC and FID on the Mako development.

Conrad subsidiary West Natuna Exploration currently has a 76.5% operated interest in the PSC, situated in waters around Riau Islands Province in the West Natuna area. The location is 100 km north of Matak Island and 400 km northeast of Singapore.

Mako contains estimated 2C resources of 376 Bcf of gas.