Conrad Asia Energy has signed a binding gas sales agreement with Sembcorp Gas concerning the Mako gas field development in the West Natuna Sea offshore Indonesia.
This covers the volumes to be allocated for export. The remainder of Mako’s gas will be sold to Indonesia’s largest gas company PGN for the domestic market.
Conrad and its partners now aim to take FID on the project later this year.
The arrangement with Sembcorp will run until the expiry of the Duyung PSC in January 2037 and allows for the sale of up to 76.9 MMcf/d.
However, the agreement contains provisions for the sale of up to a further 35.4 MMcf/d if a tie-in pipeline to the Indonesian domestic market in Batam is not built. The potential export of these additional volumes is covered in the Mako plan of development revision.
Conrad has a 76.5% operated interest in the Duyung PSC via its subsidiary West Natuna Exploration. The concession is in waters offshore the Riau Islands Province, 100 km north of Matak Island and 400 km northeast of Singapore.
Mako, which holds 2C contingent resources of 376 Bcf, could start production in 2026.
