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Finance Investment, Oil Mining Resources

Conrad Asia Energy Ltd (ASX: CRD) – Aceh Gas Commercialisation MOU Signed with PGN

Conrad Asia Energy Ltd (ASX: CRD) 3 mins read

Conrad Asia Energy Ltd (ASX: CRD) an Asia-focused natural gas exploration & production company, is thrilled to announce a strategic partnership with PT Perusahaan Gas Negara Tbk (“PGN”), the esteemed gas subsidiary of Indonesia's national oil company, PT Pertamina (Persero). This collaboration is formalized through a Memorandum of Understanding (MOU) aimed at enhancing the gas supply and infrastructure development in Indonesia.

The MOU signifies a mutual commitment between Conrad and PGN to explore and develop gas resources from Conrad’s two Aceh Production Sharing Contracts (PSCs) located offshore in the Aceh province of Indonesia. These PSCs, known as Offshore North West Aceh (Meulaboh) (“ONWA”) and Offshore South West Aceh (Singkil) (“OSWA”), represent a significant step forward in the utilization of Indonesia’s natural gas resources.

Under the terms of the MOU, both parties will embark on a joint study to evaluate the commercialization potential of the gas resources within these two PSCs. Initial efforts will concentrate on the existing shallow-water discoveries, with plans to develop and maintain potential small-scale LNG infrastructure and sales. This collaboration extends to broader cooperation in the development and maintenance of the two blocks.

Recent Competent Persons Reports (CPRs) have estimated a gross 2C Contingent Resource of 214 billion cubic feet (Bcf) of sales gas, with 161 Bcf net attributable to Conrad, across three of the four discovered shallow-water gas accumulations in the PSCs. These resources have been ascribed a net present value (NPV) of US$88 million net to Conrad, highlighting the significant economic potential of these projects.

In a move to further delineate the resource size, Conrad plans to acquire 3D seismic data over the cluster of discovered resources in ONWA during this year. This effort aims to refine the understanding of the resource size, leveraging technology not available during the initial 2D seismic acquisition in the 1970s. Additionally, the data may reveal new prospects in the vicinity, enhancing the exploration success rate in the region.

To date, the total Prospective Resources identified within the two PSCs amount to 15 trillion cubic feet (Tcf) of recoverable gas, with approximately 11 Tcf net attributable to Conrad. The deep-water areas of these blocks, containing several multi-Tcf targets, represent a longer-term focus and are drawing interest from major upstream companies.

The MOU with PGN marks a pivotal moment in the journey towards commercializing the discovered resources in the ONWA and OSWA PSCs. This partnership not only underscores the potential of these resources to contribute significantly to Indonesia’s energy landscape but also positions the MOU as a cornerstone of any future Plans of Development (POD).

Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:

"Conrad has been evaluating the offshore Aceh areas for more than five years and is excited about their potential. There have been a host of major gas discoveries recently announced offshore Aceh which has brought the region back into international focus for gas exploration companies. Our PSCs lie within a proven biogenic gas region containing flow tested gas discoveries, as well as high impact deep-water exploratory potential. The shallow-water discoveries are of near-term interest for PGN and appear suitable for commercialisation via small-scale LNG plants—an already proven solution for gas deposits of this size elsewhere in Indonesia. 

This outcome and our collaboration with the major national gas buyer highlights the importance of the Aceh resources in Conrad’s broader portfolio and underscores our commitment to support Indonesia’s energy needs. This MOU with PGN is an important milestone towards the maturation of the discovered resources in the Aceh PSCs."

 


About us:

Conrad is an Asia-focused natural gas exploration & production company concentrated on the shallow waters offshore Indonesia, and via its wholly owned subsidiaries, is the holder of several operated tenements in the form of Production Sharing Contracts. The Company’s flagship project is the Mako Gas Field located in the Natuna Sea in the shallow offshore waters of Indonesia. Mako lies along a large natural gas pipeline to Singapore, which supplies high-value natural gas into Singapore primarily for electricity generation. The Mako gas field is one of the largest gas discoveries in the region.


Contact details:

Jane Morgan

jm@janemorganmanagement.com.au

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