Jadestone strikes Indonesian gas deal
Jadestone Energy has reached an agreement to sell gas from the Akatara field off the coast of Indonesia, the London-listed company said on December 1.
The buyer is PT Pelayanan Listrik Nasional Batam, which has committed to take 20.5bn Btu/day of gas starting in the first quarter of 2024. The take-or-pay level is set at 90% of the annual quantity, and Pelayanan Listrik will be able to take a maximum of 110% of the agreed daily volume
The price is set at $5.60/mn Btu.
The signing of the deal comes less than a year after Jadestone closed the purchase of a 90% stake in the Lemang production sharing contract covering Akatara. Jadestone reached a deal to buy a further 10% on November 24.
"The development of the Akatara gas field will not only displace coal in Indonesia's energy mix, thereby assisting the transition to a lower carbon economy, but will also deliver LPGs for domestic use in the local market," Jadestone CEO Paul Blakeley said. "Once onstream, Akatara will support our growth strategy, while at the same time increasing the proportion of gas in our production mix."
The company aims to take a final investment decision on Akatara in the first half of 2022 and bring the field on stream in the first half of 2024. Akatara was previously developed as an oil asset but is assessed to hold 63.74bn ft3 in 2C gas resources.