Conrad Asia Energy has taken the final investment decision (FID) on its $320 million Mako gas field development offshore Indonesia, with key contracts set to be awarded.

Project Ownership and Partnership

The Mako field is located in the Duyung production sharing contract (PSC) area. Conrad's majority-owned subsidiary, West Natuna Exploration (WNEL), holds a 35% operating stake. Its partner is Nations Petroleum Natuna Barat (NNB), a subsidiary of the Arsari Group owned by Hashim Djojohadikusumo.

Project Status and Next Steps

The project is described as systematically derisked. The immediate priority is awarding key construction and drilling contracts. Commitments for long-lead items have commenced, with more contract awards expected soon. Production start-up is targeted for the fourth quarter of 2027.

Development Plan and Resources

The development is a two-phase programme. The initial phase comprises six development wells tied back to a leased mobile offshore production unit (MOPU) with a design capacity of 172 million cubic feet per day. The Mako field holds best estimate contingent resources of 376 billion cubic feet of gas, originating from a 2017 discovery.

Gas Sales and Infrastructure

Conrad has a binding gas sales agreement with Indonesia’s PLN Energi Primer for up to 111 billion British thermal units per day, covering the field's best estimate contingent resources until the PSC expires in January 2037. Sales gas will be transported via a new 59-kilometre pipeline to the KF platform, then through the existing WNTS pipeline to the domestic market. A new spur pipeline from the WNTS to Pemping Island is being constructed by PLN EPI.

Funding and Financials

The estimated capital expenditure to first gas is $320 million, with an additional $35 million provisioned for owner-supplied equipment and potential MOPU down payments. NNB will fund its 75% share of all future PSC costs and has agreed to carry WNEL's portion of the estimated project costs through the first development phase.

Strategic Significance

The FID marks Conrad's transition from an exploration and appraisal company to a contracted gas development company with a defined, funded capital programme and a clear path to production.