Singapore – Conrad Asia Energy Ltd (ASX: CRD) (“Conrad” or “the Company”) is pleased to announce it has executed binding agreements with PT Nations Natuna Barat (“Nations”), a subsidiary of Indonesia’s Arsari Group, to farm into the development of the Mako Gas Field in the Duyung Production Sharing Contract (“PSC”). The transaction will see Nations acquire a 75% non-operated participating interest and provide financing for 100% of project development costs and associated working capital, fully funding the Mako development through to first gas.
Transaction Highlights
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Transformational farm-down and funding package secured for Mako Gas Field development in Indonesia’s Natuna Sea.
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Nations to acquire a 75% non-operated interest in the Duyung PSC; Conrad’s wholly owned subsidiary, West Natuna Exploration Limited (WNEL), retains a 25% operated interest, carried through to commercial production (subject to government approval).
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Nations will fund all future PSC costs including development capital estimated at US$320 million, with a Carry Loan Agreement governing WNEL’s cost recovery through future production revenues.
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WNEL to receive US$16 million consideration, payable in three tranches between 1Q 2026 and first production (expected 4Q 2027).
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Funding secures Conrad’s share of development expenditure, including long-lead items, and positions the Company for first gas in late 2027.
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WNEL remains the operator of the Duyung PSC, leveraging its deep technical knowledge of the field and project history.
CEO Comment
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, said:
“We are delighted to be partnering with an Indonesian company of Nations stature on the Mako project. Nations affiliates have engaged in international upstream oil and gas activities for some two decades, and represent an excellent partner for this project. Having such a quality domestic partner whose interests are aligned with ours is a tremendous outcome for the development of the project, for Conrad and for the Indonesian gas industry. The quantum of funds secured by our team to bring Mako into production is transformational for a company our size. WNEL retains a 25% PI in the project as well as operatorship, reflecting our deep history and knowledge of the asset and our broader capabilities and ambitions and the confidence of our partner.
This transaction represents an inflection point in Conrad’s eight-year history with the project, during which WNEL discovered, appraised, obtained a Plan of Development over Mako and delivered a gas sales agreement with Indonesia’s largest power company. We are excited to take the development to the next stage and contribute to Indonesia’s much-needed domestic energy supply.
The development of the Mako gas resource will establish Conrad as a developer and producer of gas where it can leverage its operating capabilities into the development of its other discovered resources and deliver a visible growth profile through the end of the decade and beyond. Conrad’s two-pronged strategy remains unchanged: to bring Mako successfully into production, and in parallel, to focus on the multiple exploration, appraisal, and development opportunities in its two 100%-owned Aceh PSCs. Conrad anticipates moving to a Plan of Development (POD) for the existing shallow water discoveries in Aceh.”
Strategic Outlook
The transaction marks a pivotal milestone in Conrad’s transition from explorer to gas producer, securing the capital required to deliver first gas from one of Southeast Asia’s largest undeveloped gas discoveries. Net proceeds and future cash flows will also support the advancement of Conrad’s 100%-owned Aceh PSCs, where the Company plans to progress a Plan of Development for existing shallow-water discoveries.
ENDS
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About Conrad Asia Energy
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. The Mako gas field is one of the largest gas discoveries in the region.
The Company specialises in the identification and acquisition of undervalued, overlooked, and/or technically misunderstood gas assets, and has developed expertise in maturing such assets through subsurface technical work, appraisal drilling and an innovative approach to low-cost field development.
The Board and management have a proven track record of value creation and deep industry experience with oil majors, midcap E&P and the upstream investment community, together with a successful track record of bringing exploration and development projects into production, with Peter Botten the founder and Chairman of Oil Search adding enormous depth and experience as Chairman of Conrad.
Contact details:
Jane Morgan
Investor & Media Relations
[email protected]
P: +61 405 555 618
