Indonesia signs off gas price for offshore Mako field development

Feb. 23, 2024
Conrad Energy Asia says that the decision allows it to finalize fully termed gas sales agreements.

Offshore staff

SINGAPORE – Indonesia’s Minister of Energy and Natural Resources has approved the gas price and volume allocation for the Mako field project in the offshore Duyung PSC.

According to operator Conrad Energy Asia, this allows it to finalize fully termed Gas Sales Agreements (GSAs).

The Minister’s Allocation Letter represents a major step in progressing documentation for sales of Mako’s gas and access to the West Natuna Transportation System.

Conrad continues to work with Indonesian regulator SKK Migas and other parties to finalize the GSA terms.

The company has a 76.5% operated interest in the Duyung PSC via its subsidiary West Natuna Exploration. Duyung is in the Riau Islands Province in the West Natuna area, 100 km north of Matak Island and around 400-km northeast of Singapore.

Conrda discovered the Mako gas field via the Mako South-1 well in 2017. It received approval for a Plan of Development (POD) in 2018.

However, appraisal drilling and testing of two wells in 2019 resulted in the identification of additional gas resources. The company is working with the government to revise the POD to accommodate these volumes and the associated production rates.

Gaffney, Cline & Associates assesses the field’s 2C resources at 413 bcf.

During Q3 2023, Conrad signed a non-binding Term Sheet with Sembcorp in Singapore defining the key terms and serving as the basis for negotiating a definitive GSA.

Conrad is also negotiating to sell around 29.5% of Mako’s sales gas volumes to a domestic buyer.