3 March 2026 – Singapore | Conrad Asia Energy Limited (ASX:CRD), an Asia-focused natural gas exploration and development company, has today announced formal approval of Final Investment Decision (FID) for the Mako Gas Project, located within the Duyung Production Sharing Contract (PSC) in Indonesia’s Riau Islands Province.
The FID marks Conrad’s transition into the development and cash flow phase, with project execution now ramping up and first gas targeted for 4Q 2027. Total capital expenditure to first gas is estimated at US$320 million (100%), with the 25% share of West Natuna Exploration Limited’s (WNEL) estimated at approximately US$80 million (consistent with prior guidance). WNEL has already committed to project contracts in excess of US$110 million (100%). Full funding has been secured for all budgeted project costs, including a substantial contingency allowance.
The Mako Gas Project has fully contracted revenue under a long-term, government-backed gas sales arrangement extending to January 2037 (the current end of the Duyung PSC). Conrad and PT PLN Energi Primer Indonesia (PLN EPI) have also signed a binding gas sales agreement for the sale of up to 111 billion British thermal units per day (Bbtud), covering the full 2C Contingent Resources attributable to the field through to PSC expiry.
Nations Petroleum Natuna Barat (NNB) will fund its 75% share of all future costs for the PSC, including Mako’s development, and has agreed to carry WNEL’s portion of the estimated project costs through the first phase of the Mako development. Repayment mechanics are governed by a Carry Loan Agreement (CLA), with repayment to be funded out of WNEL’s share of production.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented: “The Mako FID has transitioned Conrad from a speculative exploration/appraisal company to a fully contracted gas development and future production company with a defined and funded capital programme and a clear path to production. With contracted gas sales in place, funding secured and first gas targeted, the Company believes the Project provides a clear pathway to Conrad becoming an energy producer in the fastest-growing energy consumption region in the world. Mako represents a disciplined and substantially de-risked entry into South-East Asian gas growth, which we aim to augment with our Aceh gas accumulations in due course.
This milestone reflects many years of technical, commercial and financing discipline. The Project has been systematically derisked across subsurface, engineering, permitting and funding, positioning Conrad to progress confidently into construction. It is fully funded, including substantial contingencies, at a time when access to development capital for smaller companies remains challenging. The funding structure preserves Conrad’s exposure to long-term cash flows while materially reducing medium-term balance sheet pressure and equity dilution risk.
Our immediate focus is the safe and efficient award and execution of key construction and drilling contracts.
For investors, this is the moment where risk compresses, and valuation frameworks change — from resource optionality to cash flow visibility. I am particularly proud of our entire team for staying focused through the organic transition from explorer to producer, having discovered Mako, successfully appraised it, certified the resources, delivered an approved Plan of Development, contracted the entire gas resource base to the largest energy company in Indonesia and then finally securing the financing to bring the field into production whilst preserving our capital base.”
The Project represents the culmination of a multi-year technical and commercial program that began with the 2017 Mako South-1 discovery, followed by appraisal drilling in 2019. All of the wells were successfully flow-tested, supporting the development plan, the design of gas processing facilities and tie-in to the West Natuna Transportation System (WNTS). The conclusion of gas sales arrangements and progress toward finalising gas transportation arrangements with the WNTS joint venture were key steps in reaching FID.
Development is structured as a two-phase program. The initial phase (this FID) comprises six development wells tied back to a leased Mobile Offshore Production Unit (MOPU) with a design capacity of 172 MMscfd. Sales gas will be transported via an approximately 59 km, 18-inch pipeline to the KF platform in the adjoining Kakap PSC, then through the WNTS pipeline for delivery into the Indonesian domestic market. Supply will be supported by a new spur pipeline from the WNTS to Pemping Island, which is being constructed by PLN EPI.
Following completion of the previously announced transactions, Conrad is expected to hold a 22.875% operating interest in the Duyung PSC via interests in WNEL. The Mako field contains 2C Contingent Resources (100%) of 376 Bcf; post transactions, 58 Bcf will be net attributable to Conrad. An independent third-party review of the scope for reclassification of Contingent Resources to Reserves will be the subject of a future announcement.
Conrad said its immediate priority is the award of key project contracts, including additional contract awards expected in the coming weeks, as the Company progresses toward first gas in 4Q 2027.
Contact details:
Jane Morgan Management
Investor & Media Relations
[email protected]
