Conrad Asia Energy Ltd (ASX:CRD), a leading natural gas exploration and development company focused on Asia, is thrilled to announce a pivotal advancement in the Mako field project within the Duyung Production Sharing Contract (PSC). The Indonesian Minister of Energy and Natural Resources has officially approved the gas price and volume allocation for the Mako project, marking a significant milestone in the project's development and the country's energy sector.
This approval, conveyed through an Allocation Letter from the Indonesian Minister of Mining and Natural Resources, sets the stage for Conrad to finalize fully termed Gas Sales Agreements (GSA). It signifies a crucial step forward in the commercialization of the Mako gas field, located in the prolific Natuna Sea, and underscores the project's contribution towards Indonesia's ambitious goal to double its gas production by 2030.
The Allocation Letter not only confirms the volumes and prices for gas to be exported and sold domestically but also serves as a foundational document for securing pipeline capacity through the West Natuna Transportation System (WNTS) for the evacuation of Mako gas. This development is instrumental in advancing the documentation and finalization of the GSAs, with Conrad working closely with SKK Migas, the Indonesian upstream regulator, and other relevant parties to meet customary conditions precedent.
Conrad's commitment to the Mako project and its collaboration with Indonesian authorities exemplifies the company's dedication to supporting Indonesia's energy independence and sustainability goals. The Ministerial approval is a testament to the project's viability and Conrad's expertise in navigating the complexities of energy development in the region.
As Conrad moves forward with finalizing the GSAs and further developing the Mako gas field, the company is poised to play a significant role in enhancing Indonesia's gas production capacity and meeting the growing energy needs of the region.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
The approval by the Minister of the Mako gas price and volume allocation is an important milestone towards the completion of the Mako GSAs. Together with the WNTS access agreements these are key requirements for a final investment decision on the Mako field development. I am very pleased to receive the continuing support from the Government of Indonesia for the development of this important gas field which will contribute to Indonesia’s objective of increasing domestic gas production and transitioning to cleaner burning fuels.
Conrad has made significant progress with the Mako gas project, including securing government approvals, maturing farm down discussions, and pushing forward with debt funding initiatives. The injection of capital from the recent successful capital raise has put us in a strong position to conclude the last outstanding issues on achieving the final investment decision.
About us:
Conrad holds a 76.5% operated interest in the Duyung PSC via its wholly owned subsidiary West Natuna Exploration Limited. Duyung is located in the Riau Islands Province, Indonesian waters in the West Natuna area, approximately 100 km to the north of Matak Island and about 400 km northeast of Singapore.
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Jane Morgan
