Offshore staff
SINGAPORE — Conrad Asia Energy has issued an update on planning for the Mako gas development in the Duyung PSC offshore Indonesia.
FEED studies have concluded, with estimated capital costs of $325 million. The planned development wells would be designed to deliver 120 MMcf/d over a seven-year plateau period.
During third-quarter 2023, the company signed a non-binding term sheet with Sembcorp Gas in Singapore that serves as the basis for negotiating a definitive gas sales agreement (GSA). Subsequent negotiations between the Minister of Mining and Natural Resources and Sembcorp have led to an improved price formula and a delay in executing the GSA, now expected by the end of the second quarter.
Conrad also has progressed technical and commercial work with the West Natuna Transportation System (WNTS) joint venture concerning exports of Mako’s gas to Singapore.
Based on present negotiations, FID on the development will likely not take place until mid-year 2024, with first production in mid-2026. The Duyung farm-down process continues with various companies expressing interest in joining the project.
01.31.2024
