Indonesia approves Mako gas price and allocation

Australia-listed Conrad Asia Energy on February 23 announced that gas price and volume allocation for the Mako field project have received approval from the Indonesian Minister of Energy and Natural Resources.

The allocation letter issued to Conrad Asia Energy marks a crucial step in advancing the documentation for the sales of Mako gas and securing access to the West Natuna Transportation System (WNTS). This formal approval serves as the basis for reserving pipeline capacity, facilitating the evacuation of Mako gas.

“The approval by the minister of the Mako gas price and volume allocation is an important milestone towards the completion of the Mako GSAs. Together with the WNTS access agreements these are key requirements for a final investment decision on the Mako field development," Conrad Asia Energy's CEO, Miltos Xynogalas, said.

The company has been making progress with the Mako gas project, including obtaining government approvals, advancing farm down discussions, and pushing forward with debt funding initiatives. 

The Mako gas field was discovered in 2016, and since that time the resource has been delineated through successful appraisal drilling. It received formal approval from the government of Indonesia for the revised plan of development in late 2022. 

Duyung PSC is operated by WNEL, a wholly-owned subsidiary of Conrad Asia Energy, which also operates the offshore Mangkalihat PSC in North Kalimantan province. WNEL holds a 76.5% interest in the licence, with Empyrean owning 8.5% and Coro Energy owning 15%.

In Q3 2023, Conrad Asia Energy signed a non-binding term sheet with Sembcorp, a Singapore energy company, outlining key terms for negotiating a definitive GSA.