Offshore staff
SINGAPORE — Conrad Asia Energy Ltd. has entered into binding key terms for the sale and purchase of the domestic portion of Mako gas with PT Perusahaan Gas Negara Tbk (PGN), the gas subsidiary of PT Pertamina (Persero), the national oil company of Indonesia.
Conrad and PGN will sign a fully termed gas sales agreement (GSA) for the domestic portion of the gas produced from the Mako Field in the Duyung production sharing contract (PSC) in the West Natuna Sea offshore Indonesia.
Empyrean Energy has an 8.5% interest the Duyung PSC, with Conrad Asia Energy holding the remaining 76.5% operated interest.
The parties are scheduled to sign the GSA no later than May 31.
This GSA will be subject to the construction of the pipeline connecting the West Natuna Transportation System (WNTS) with the domestic gas market in Batam. It forms part of Conrad’s domestic market obligation as set out in the Mako’s revised plan of development.
The sales volumes under this agreement will represent about 29.5% of Mako sales gas volumes until the PSC expires in January 2037. The remainder of the Mako sales gas volumes will be sold to Singapore where a term sheet was signed in third-quarter 2023, and Conrad said it is moving toward finalizing a GSA over the coming months.
"As approved by the Indonesian regulatory authority SKK Migas in 2022, a two-phase development plan based on six initial development wells tied back to a leased production platform at the Mako gas field is proposed, with sales gas transported via the WNTS pipeline to Singapore for sale to the Singapore market, and potentially to the Indonesian domestic market via a yet-to-be constructed spur from the WNTS. Two further development wells are planned three years after first gas. The development plan proposes a plateau production of 120 MMscf/d for 3.5 (low case), 6.5 (best case), or 11.5 (high case) years," Empyrean reported.
Mako development FID is expected by mid-2024.
03.28.2024
