Conrad Energy Asia Ltd. signed a non-binding term sheet with Sembcorp Gas Pte. Ltd. for long-term natural gas sales from Mako gas field offshore Indonesia. The term sheet has been endorsed by the Indonesian petroleum upstream regulator (SKK Migas).
The terms include sale of Mako gas from the start of production until 2037 for a total sales gas volume of about 293 bcf with the potential to increase to about 392 bcf. Gas sales will be priced against Brent oil.
Mako gas field was discovered in 2016 and has been delineated through appraisal drilling (Mako South-1, Tambak-1 and Tambak-2). The company’s revised plan of development received formal approval from the Government of Indonesia in late 2022 (OGJ Online, Nov. 8, 2022). The FEED phase is under way and is expected to be completed by end-September.
Conrad holds 76.5% interest in Duyung PSC, which contains Mako gas field. With 2C contingent resources of 413 bcf, it is considered one of the largest gas discoveries in the West Natuna Sea and the largest undeveloped resource in the area.
Mako, in 90 m of water depth, adjoins the West Natuna Transport System connected to Singapore with current utilization rate of about 60%, decreasing over time.
The parties will now focus on finalizing a definitive gas sales agreement.
