Sydney, Australia – Conrad Asia Energy Ltd (ASX: CRD), ASX listed Asia-focused natural gas exploration & production company, is thrilled to announce a major milestone in its Mako gas project. The company has successfully 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 esteemed gas subsidiary of Indonesia's national oil company, PT Pertamina (Persero).
This landmark agreement, signed on 27 March 2024, marks a pivotal step forward in the development of the Mako field, located in the Duyung Production Sharing Contract (PSC) area in the West Natuna Sea, offshore Indonesia. Both Conrad and PGN have committed to finalizing a comprehensive Gas Sales Agreement (GSA) for the domestic gas produced from the Mako field by no later than 31 May 2024.
The GSA is contingent upon the completion of a pipeline that will connect the West Natuna Transportation System (WNTS) with the domestic gas market in Batam. This infrastructure is crucial for fulfilling Conrad’s Domestic Market Obligation (DMO) as outlined in the Mako’s revised Plan of Development (POD). The agreement ensures that approximately 29.5% of Mako sales gas volumes will be supplied to the domestic market until the PSC expires in January 2037.
Furthermore, Conrad is in the process of finalizing a Gas Sales Agreement for the remaining Mako sales gas volumes with Singapore, following a term sheet signed in the third quarter of 2023. This dual approach not only underscores Conrad’s commitment to meeting domestic energy needs but also highlights its strategic positioning in the international gas market.
The signing of these Key Terms with PGN is a critical step towards achieving the Final Investment Decision (FID) for the Mako project, anticipated by mid-2024. This development underscores Conrad’s dedication to enhancing energy security in Indonesia and the broader Southeast Asian region, while also contributing to sustainable economic growth.
Conrad Asia Energy Ltd is proud to partner with PGN in this venture and looks forward to the successful completion of the GSA and the subsequent development of the Mako gas field. This collaboration is a testament to Conrad’s expertise in natural gas exploration and development, and its commitment to delivering value to its shareholders and contributing positively to the communities it serves.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
Conrad has been working closely with PGN for the commercialisation of Mako gas. These Key Terms are a very important milestone paving the way for a fully termed gas sales agreement and brings the company a step closer to the FID for the Mako development. This agreement, combined with Conrad’s recent signing of a Memorandum of Understanding for its Aceh gas resources also with PGN, will further advance the Government of Indonesia’s ambition to meet the fast-growing energy needs of the country.
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 ofseveral 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
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Jane Morgan
